Global semiconductor sales grew by four percent month over month in August, totaling $13.42, according to the Semiconductor Industry Association, but U.S./Americas sales were down one-half of one percent year over year. This is the sixth consecutive month of growth and most of the growth is attributed to microprocessors and DRAM sales growth, which were up 7.8 percent and 11 percent respectively. Consumer device processors are also reported to be up 5.3 percent. See the detailed PDF for the regional numbers, which aren't as encouraging as the overall report.
This is happening for two reasons, but only one is clearly visible in the release: Christmas. Inventories for an expected stronger Christmas sales season are built today. This inventory surge happens every year, but the year-over-year sales in the United States are down, indicating that U.S. PC OEMs are not recovering while Asian and European OEMs may be. But, what is not visible in the report is the impact of defense spending, which has been accelerating for most of the year. I am not sure there is a legitimate recovery in electronics going on; it may be simply a matter of inventory build-up for a Christmas that could be worse than normal, based on declining consumer confidence and uncertainty about employment.
Posted by Mitch Ratcliffe at September 29, 2003 11:11 AM | TrackBack