Worldwide semiconductor sales witnessed a slow growth in September 2008, as a result of falling demand corresponding to the global financial crunch.
According to the Semiconductor Industry Association, global chip sales rose to $23 Billion in September 2008, registering a 1.1% increase over the previous month and 1.6% rise from September 2007, as per the news published by forbes.
Sales for the period Jan-Sep 2008 recorded an increase of 4% over the period of Jan-Sep 2007. On the other side, the sales excluding memory products jumped 7.8% in September 2008 on a YOY basis, while sales of DRAMs and flash memory sales snipped by 11.1% and 37.5% respectively on a month-over-month basis.
The worldwide sales of semiconductor became sluggish due to the meltdown of the global financial markets. Several Wall Street firms have collapsed during the present crisis and consequently, the demand of electronic equipments has suffered a setback. As a result, semiconductor demand declined drastically.
Further, the weakening consumer confidence and vigilance in the enterprise section has raised the uncertainty about the future. The fall in the prices is equally responsible along with the economic crisis for the weak performance of semiconductor market. However, there is no decline in the consumption of memory devices, but the decreasing costs led the revenues to slump down in September 2008.
The present growth in the sales has mainly come from the emerging markets that are showing some positive signs. This is because the sales of mobile phones and PCs, which are the largest consumers of semiconductor devices, are going strongly due to the increasing consumer population, rising income levels and reasonable costs.
According to a Research Analyst at RNCOS, “The worldwide economic meltdown made the semiconductor sector to grow slower in September 2008. However, major countries of the developing world have managed to retain high economic growth rate, though below the recent levels. The key to bring the semiconductor sales back on track is the restoration of consumer confidence. Also, the severity of financial crisis will also decide the consumers’ stand because if the condition worsens, consumers may cut their expenditure. This would affect the sales of PCs and other electronic goods, which would ultimately reduce the chip sales.”
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