Recession over in chip scene?

By : |August 31, 2009 0

TAIPEI, TAIWAN: The semiconductor industry is slowly recovering from the clutches of recession. Or so say the feelers. Taking into account the latest figures, this seems to be right.

As per sales numbers recorded for June, it has been found that the total semiconductor sales stood at US$19.3 billion, heralding a US$51.7 billion second quarter. This in fact is a rise of 16.9 per cent compared with the first quarter figures.

The rise is considered a welcome development, but not so big if one goes by the previous year’s figures. According to a Future Horizons study, sales were down by around 20 per cent compared to the same period a year earlier.

However, in comparison to the first quarter this year, which was down 15.3 per cent sequentially and down 30 per cent year on year, the market research firm has said that the worst of the chip market recession is now over.

Meanwhile, Semiconductor Industry Association (SIA) said in a statement that global semiconductor sales rose 5.3 in July sequentially, reflecting a pick up in demand for products such as netbooks and cell phones.

"The fifth-consecutive month of sequential increases in semiconductor sales reflects improving demand in the consumer sector," SIA President George Scalise said in a statement.

"Purchases of information technology products by the enterprise sector continue to be tempered by caution and longer replacement cycles. There is also evidence of a return to seasonal industry patterns," Scalise said.

The weak global economy has heavily affected the semiconductor industry over the last one year and chipmakers have been aggressively cutting costs and reducing workforce to stay afloat.

(With inputs from Reuters)

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