by CIO Staff

Semiconductor Chip Sales in Aug. Hit Record $20.5B

Oct 02, 20062 mins
Data Center

Worldwide sales of semiconductor chips were up 10.5 percent from August 2005 to August 2006—reaching a record-setting $20.5 billion—and such sales also increased by 2.1 percent over July, Reuters reports via

The news comes from the Semiconductor Industry Association (SIA), according to Reuters.

The next highest monthly chip sales of $20.4 billion were recorded in November 2005, Reuters reports.

SIA President George Scalise said in a statement, “Semiconductor devices for consumer applications showed strong sequential growth, as manufacturers began gearing up for the holiday season. [And] a sharp decline in gasoline prices appears to have boosted consumer confidence,” according to Reuters.

Such consumer uses for chips as mobile phones, LCD displays and digital cameras, among others, currently employ more than 50 percent of all chips manufactured, SIA said, according to Reuters.

Many experts have predicted that the worldwide chip space will see an increase in revenue of approximately 10 percent in 2006, up from $235 billion the previous year, Reuters reports. The number of chips made in the period between January and July of this year was up some 24 percent, according to Reuters.

August saw DRAM chips, which are employed in PCs, take one of the top slots as far as volume of sales, with shipments up by roughly 12 percent and an approximate 20 percent boost in price when compared with August of last year, Reuters reports.

NAND flash memory, which is typically used in some digital cameras and MP3 players, saw an increase in shipments but a 31 percent drop in price, according to Reuters.

Revenue derived from sales of microprocessors decreased on a price drop of 18 percent, but shipments were up, Reuters reports.

On the geographical level, sales increases reached all areas, with the Americas region in the lead on an 18 percent sales boost, according to Reuters. Chip production plants in Europe felt the smallest positive effect with only a 4 percent rate of growth, and the Asia Pacific region combined with Japan represented some 66 percent of all chip sales, Reuters reports.

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