Global semiconductor sales increase in April

Worldwide sales of semiconductors rose to $15.6 billion in April, an increase of 6.4 per cent from March when sales were $14.7 billion, the Semiconductor Industry Association (SIA) reported yesterday.

The trade association representing the US semiconductor industry said April sales were 25 per cent lower than April 2008 when sales were $20.9 billion. All sales numbers represent a three-month moving average of global semiconductor sales.

''The better-than-expected 6.4 per cent sequential increase in April sales was driven by moderate improvements in a number of end-demand drivers and inventory replenishment,'' said SIA President George Scalise. ''The PC market - a major consumer of semiconductors - has been stronger than predicted earlier in the year. Consensus forecasts currently project that PC unit sales in 2009 will decline by about 6 per cent compared to earlier forecasts of a decline in the range of 12 per cent.''

''Analysts are also more optimistic about cell phone unit sales, which are now projected to decline by around 7 per cent compared to earlier forecasts of 15 percent. PCs and cell phones account for nearly 60 percent of all semiconductor consumption,'' he added.

SIA noted that the worldwide automotive market, which accounts for about 7 per cent of total semiconductor sales, remains weak. Corporate information technology spending has also lagged normal patterns as companies have lengthened replacement cycles.

The consumer electronics sector presents a mixed picture as analysts project increased unit sales of digital televisions and hand-held game players and lower unit sales of most other consumer electronics products.

''Visibility remains limited with two consecutive months of sequential sales growth may be an indication of a return to more normal seasonal sales patterns in some market sectors, albeit at lower sales levels than last year,'' Scalise concluded.