World chip sales rise just 1.8 % in Oct

AMSTERDAM: Global semiconductor sales grew by a slower 1.8 percent in October compared with September to $12.52 billion, according to figures published on Friday by the chip industry's main industry group. The October sales numbers, released by the World Semiconductor Trade Statistics (WSTS) group, revealed that chip sales, used in electronic devices ranging from computers and mobile phones to shavers and cars, rose 19.9 percent compared with the same month of October a year earlier.

The month-on-month growth was slightly slower than in September, when sales grew three percent from August following the traditionally slower summer months. The $139 billion-a-year industry usually sees a holiday rally toward the end of the year as electronics makers stock up on the semiconductors that make their computers, phones and toys work. But many executives and analysts already expect this holiday-selling season to be muted.

Financial analysts, who said they needed to study the full set of statistics, said the overall number was more or less as expected. The Dow Jones European technology index off 1.73 percent following the news at 239.39 points. The FTSE European semiconductor index was down 1.35 percent at 228.94 points, under-performing the FTSE Eurotop 300.

Europe Strong

October chip sales, measured as a three-month average to eliminate short-term swings, grew fastest in Europe, by 6.2 percent to $2.46 billion compared with September. Revenues in the Americas grew 0.5 percent month-on-month to $2.65 billion, and in Asia Pacific by 1.0 percent to $4.56 billion. Sales in Japan were up 0.8 percent at $2.85 billion.

Monthly sales growth in Asia and the Americas was tapering off compared with earlier months, while Europe is accelerating. Compared with the same month a year earlier, October sales grew 11.7 percent in Europe, 5.2 percent in the Americas and 35.1 percent in Asia Pacific. Japan grew 21.4 percent.

The comparison is relatively easy this year because of last year's economic uncertainty following the September 11 attacks. On an annual basis chip sales growth was still accelerating in both Europe and Japan, while slowing in Asia and Americas.

© Reuters