Electronics Industry Update

The dollar value of semiconductor sales plummeted 19.3% between March and April 1998. The dollar value of semiconductors sold during April 1998 was 6.2% lower than April 1997. Sales for 1998 were 5.2% lower than the same period of last year. Unit sales volume plunged 8.4% between March and April. April 1998 unit sales were 5.7% better than April 1997. The price of semiconductors was 11.2% lower in April 1998 than in April 1997. The value of DRAM sales this April was 33.9% behind April 1998. Through April 1998, DRAM sales values were down 25.8% from April 1997, while the value of microprocessor sales faded by 9.3%. The severe problems besetting the Japanese market and worsening conditions in North America are apparent upon review of the over-the-year sales trends. April 1998 sales were lower than April 1997 everywhere except Asia/Pacific and Europe. For Europe the increase was 0.3%, while Asia/Pacific sales rose 6.9%. April 1998 sales to North America came in 13.2% below the April 1997 level, while sales into the Japanese market declined 14.4%. Through April 1998, the value of semiconductors sold to both Europe and the Asia/Pacific region had risen about 2% above the same period in 1997. However, January-April 1998 sales to North America were off 8.5%, and sales to Japan were down almost 14%.