April Semiconductor Sales Up 6 Percent Year-on-Year

Business Wire, June 2, 2008

Sales Essentially Flat with March 2008

SAN JOSE, Calif. -- Worldwide sales of semiconductors of $21.2 billion in April were 5.9 percent higher than the $20.1 billion reported for April 2007, the Semiconductor Industry Association (SIA) reported today. April sales were essentially flat sequentially with the $21.2 billion reported for March 2008. Year-to-date sales of $82.9 billion are 4.3 percent higher than the first four months of 2007 when sales were $79.5 billion. SIA noted that the April results are in line with historical industry patterns.

"Despite steep increases in energy costs that have diminished the disposable income of consumers, worldwide sales of semiconductors grew by a healthy 5.9 percent compared to April 2007," said SIA President George Scalise. "Price attrition in memory products continued to dampen overall revenue growth for the industry. Excluding sales of memory devices, April semiconductor sales grew by more than 12 percent year-on-year. Unit sales of both DRAMs and NAND flash products were up significantly year-on-year, but price attrition resulted in a 14 percent decline in total sales of memory products.

"Unit sales of personal computers and handsets - the two largest demand drivers for semiconductors - continue to be in line with forecasts," Scalise continued. "Unit sales of PCs are projected to grow by around 10 percent this year, while handset unit sales are forecasted to grow in the 12 percent range. Growth in these two important end-markets is increasingly driven by sales outside the United States."

SIA noted that the Consumer Electronics Association (CEA) reports that consumer spending on electronic products as a percentage of all purchases of durable goods is continuing to rise from less than 10 percent in 1980s to around 15 percent today. CEA also estimates that the economic stimulus package in the U.S. will generate $5 billion in additional consumer electronic purchases - these effects have not yet been seen in the data.

SIA will update its forecast of global semiconductor sales for 2008 through 2010 on June 11.

About the SIA Global Sales Report

The SIA Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, which represents approximately 66 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies' financial calendars.

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About the SIA

The SIA is the leading voice for the semiconductor industry and has represented U.S. semiconductor companies since 1977. Collectively, the chip industry employs a domestic workforce of 216,000 people. More information about the SIA can be found at www.sia-online.org.