Chips Sales are Up, Mark Your Calendar for June 10th

By the Peanut Princess, Trading Nymph

Normally, the Semiconductor Industry Association releases their Chip Sales on the First Monday of the Month with the people that actually pay for the subscription getting to see it the day before. But No, because of the Holiday it is out to the public today. If you have not read it, the Press Release is down below. Remember this is April’s numbers, so knowing what happened in May to China and Europe this imho could be coming to an end of another Semiconductor Cycle. June 10th as you can see below will be the Mid Year Forecast which could be very interesting? As we all know, the semiconductor industry is highly cyclical. During periods of favorable market conditions, like our crazy Grass Shoots of 2009, semiconductor manufacturers often begin building new stuff fast in response to anticipated demand growth for semiconductors. As a result, large amounts of semiconductor manufacturing capacity typically become available at the same time. If this anticipated growth doesn’t come, this increase in supply often results in semiconductor manufacturing overcapacity. Which of course is so what happened in 1999/2000. So has the Industry partying like 1999….will we be singing “Party like 2..0..0..9 soon?

SEMICONDUCTOR INDUSTRY ASSOCIATION
REPORTS APRIL CHIP SALES GREW BY 2.2 PERCENT MONTH-ON-MONTH

SAN JOSE, CA – June 1, 2010 – The Semiconductor Industry Association (SIA) today reported that worldwide semiconductor sales in April were $23.6 billion, an increase of 2.2 percent from March when sales were $23.1 billion. Sales increased by 50.4 percent from April 2009 when sales were $15.7 billion. Sales for the first four months of 2010 were $92.6 billion compared to $60.1 billion for the like period of 2009, an increase of 54.2 percent. All monthly sales numbers represent a three-month moving average.

“Global sales of semiconductors grew at a healthy rate in April, surpassing the previous monthly record level of November 2007,” said SIA President George Scalise. “As expected, both the year-on-year and sequential growth rates moderated slightly. The unusually high year-on-year comparison is a reflection of the trough of the recession in early 2009 compared to strong demand today.

“Important contributors to current growth of semiconductor sales include the worldwide adoption of 3G wireless communications and consequent investment in infrastructure and recovery of demand from the enterprise, automotive, and industrial sectors.

“Going forward, we expect semiconductor sales will return to historical seasonal patterns. Future growth of the industry remains heavily dependent on the continued global economic recovery, and in particular, on continued growth in the developing markets that are the largest demand drivers for our products,” Scalise concluded.

SIA will release its mid-year forecast on June 10.

 

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