Global sales of semiconductors grew 3.2% in July to $20.6bn from the previous month, driven by sales of microprocessors and NAND flash memory, according to the Semiconductor Industry Association.
July’s chip sales were 2.2% higher than the $20bn recorded a year ago.
Semiconductor Industry Association (SIA) president George Scalise said priced climbed slightly in several large segments of the market during July. Notably, price erosion in the memory sector slowed significantly during the month as unit shipments grew, he said.
And the major demand drivers for semiconductors, including PCs and cell phones, seem to be growing in line with analysts’ projections, Scalise said. Despite intense competitive pressures earlier in the year, global chip sales are on track to grow 1.8% this year, which is what SIA had previously forecast.
At this stage, it does not appear that the fall-out from problems in the sub-prime mortgage arena has had a significant impact on consumer purchases of electronic products, Scalise said. This is a concern that bears watching going forward.
Specifically, unit sales of microprocessors grew by nearly 5% 5 from June while average selling prices rose a little more than 3%. ASPs for DRAMs continued to decline, but price attrition slowed to less than 2% from June. NAND flash unit shipments were essentially flat with the prior month, but ASPs were up by more than 8% and total revenues from NAND flash products grew by nearly 8% from June, according to the San Jose, California-based SIA.