Electronics Industry Update

Staff -- Semiconductor International, 5/1/1998

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The dollar value of worldwide semiconductor sales fell by 20% between December and January. The Asian crisis is having a significant impact on the dollar value of semiconductor sales, despite generally solid end-market demand. Average prices are falling because of currency devaluations in East Asia and global overcapacity in some key semiconductor product categories. January worldwide semiconductor sales were 0.6% higher than during the first month of 1997. This was the smallest over-the-year gain in monthly sales in nine months. Unit sales fell 10.4% between December and January, but January unit sales volume was still 10.9% ahead of January 1997. The average selling price of all semiconductors was 9.2% lower in January than in January 1997. The average price for discretes sold this January was 7.5% lower than a year earlier, while the average price for all IC devices (about 86% of the total semiconductor market) was down 14.8% over the year. The most significant problems continue to be in the memory market. DRAM sales rebounded nicely during mid-year 1997. Third-quarter 1997 sales values were up a sharp 20.4%. However, the market started to fall apart again in October, and by January, sales were running 14.2% behind their year-earlier level.

Semiconductor Device Sales Trends by Regional Market