SAN JOSE, USA: Worldwide sales of semiconductors of $63.4 billion for the first quarter of 2008 were 3.8 percent higher than the $61.1 billion reported for the first quarter of 2007, according to the the Semiconductor Industry Association (SIA).

March sales of $21.1 billion were 3.4 percent higher than the $20.5 billion reported for February 2008. Sales declined by 5.1 percent in the first quarter of 2008 compared to the $66.8 billion for the fourth quarter of 2007. SIA said the decline reflects a normal seasonal decline from the historically strong fourth quarter.

“Weakness in memory revenue as a result of rapid price erosion masks the overall strength of semiconductor sales,” said SIA President George Scalise. “Excluding memory products, total semiconductor sales increased by a very healthy 11 percent year-on-year.

“Sales were buoyed by growing consumer purchases of electronic products in world markets, more than offsetting the effects of a slowing US economy. Although semiconductor sales in the US grew more slowly than overall worldwide sales, revenues in the first quarter of the year still registered growth of 2.3 percent versus the 3.8 percent growth worldwide year-on-year.

“According to a new Gartner report, PC unit sales grew by 12 percent in the first quarter of 2008, reaching 71.1 million units, with strong sales outside the US and slower sales in the US. The US market now accounts for approximately 21 percent of worldwide PC demand -– down from over 31 percent just five years ago. Strength in the PC market was reflected in sales of microprocessors, which increased by 13.4 percent year-on-year. Average selling prices (ASPs) for microprocessors declined by a modest 3.5 percent over the past year, while units were up by 17.4 percent.” Personal computers are the largest single end market for semiconductors."