The SIA says that revenue in the semiconductor industry in August increased 0.7 percent over July, noting strong demand for tablets and PCs but lower demand elsewhere.
Semiconductor Industry Association, the latest group to cast a pall on the
market, said that demand for tablets and PCs is offset by slowing demand in
a report released Oct. 3, the SIA said that in August, worldwide sales of
semiconductors edged up to $25.03 billion, an increase of 0.7 percent over the July
level and 2.2 percent more than they were in the same month in 2010.
in August were, in large part, driven by strong demand in tablets and PCs," SIA
President Brian Toohey said in a statement. "Growth in these areas is
encouraging. However, lower consumer and industrial demand across a wide range
of products and markets is keeping overall sales lower than expected at this
continuing recovery of the semiconductor industry in Japan, which was hurt by
the earthquakes and tsunami that struck the country in March, buoyed the August
numbers. In addition, SIA officials said the increasing number of
semiconductors used in car systems has pushed the market for
application-specific semiconductors to double-digit growth, creating a picture
for the overall semiconductor market that the SIA labeled "promising" despite
the uncertain global economic picture.
SIA numbers come on the heels of other analyst reports pointing to a slowdown
in the global semiconductor space, with most firms blaming the weak economy-particularly
in the United States and Europe-and reduced consumer demand for electronics.
research firm IHS iSuppli
on Sept. 21 said semiconductor revenue would grow
an "anemic" 2.9 percent to $313.3 billion this year. This reflects a reduction from IHS iSuppli's earlier projection of 4.6 percent growth for this
economic weakness is taking its toll on the worldwide electronics and
semiconductor industries, just as these markets are entering the critical preholiday
sales season," Dale Ford, vice president of electronics supply chain and semiconductors
for IHS iSuppli, said in a statement at the time. "While economic challenges
have persisted into 2011, consumer spending could have still sustained a
reasonable level of growth in electronics demand if conditions had remained
reasonably stable. Unfortunately, the accelerating decline and instability of
the economy has reasserted itself as the primary driver of tepid electronics
and semiconductor revenue growth in 2011."
week earlier, Gartner
reduced their revenue estimates for the semiconductor industry for
both 2011 and 2012. Slowing demand for PCs and other consumer devices, driven
by the difficult economic picture, was the key culprit. Gartner analysts now
forecast worldwide semiconductor revenue for 2011 to amount to $299 billion, a dip
of 0.1 percent from the 2010 total. In the second quarter, they had predicted
5.1 percent growth for this year. The downgraded forecast comes during the
third quarter, which historically has been a strong one for the industry,
according to Bryan Lewis, research vice president at Gartner.
companies' third-quarter guidance is well below seasonal averages," Lewis said
in a statement. "The current guidance by vendors points to flat-to-down
third-quarter growth. Typically, we see guidance for 8 to 9 percent growth in
the third quarter because of back-to-school and the holiday build. The supply
chain is also showing a significant slowdown, and semiconductor-related
inventory levels are still elevated."