Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Hardware
See data differently
Average Rating:
Rate this article:  
DRAM Price Drops Hide Global Demand for Chips
DRAM Price Drops Hide Global Demand for Chips

By Mark Long
March 31, 2008 10:16AM

    Bookmark and Share
February semiconductor sales rose 1.5 percent from January to $20.44 billion, while chip revenues fell 4.9 percent, the Semiconductor Industry Association reports. The SIA said markets outside the U.S. show demand for electronics that drive semiconductor sales, but a decline in the price of DRAM memory chips masked the growth in chip sales.
 

Related Topics

Chips
SIA
DRAM



The Semiconductor Industry Association reports that global semiconductor sales in February rose 1.5 percent from the year-earlier period to reach $20.44 billion. Though chip revenues fell 4.9 percent from January, the result was in line with normal seasonal patterns, the trade group said.

"Excluding memory products, worldwide semiconductor sales grew by nearly 10 percent year-on-year," noted SIA President George Scalise. Even better, total unit shipments for all semiconductor products "increased by 11.6 percent year-on-year, indicating strength in the end markets that drive demand for microchips," Scalise said.

DRAM's Drag

Despite a slowing U.S. economy, markets outside North America continued to show robust growth in demand for electronic products that drive semiconductor sales, the SIA said. However, the underlying strength in the month's global chip sales was masked by a continued decline in the price of DRAM memory chips, Scalise said.

"DRAM revenues declined by more than 40 percent year-on-year despite a 43 percent increase in unit shipments" and "average selling prices for DRAM chips declined by nearly 60 percent year-on-year," Scalise explained.

The SIA's latest report suggests that the surprising weakness in memory-chip sales that occurred in the fourth quarter is continuing to take the wind out of global chip sales. According to researchers at iSuppli, global DRAM revenue unexpectedly tanked 19.1 percent in last year's fourth quarter, exceeding the research firm's expectation of a 4.7 percent decline.

Moreover, NAND-flash revenue declined 3.9 percent in last year's fourth quarter, causing memory-chip revenue to decline 11 percent overall, iSuppli said. "This was a complete role reversal for memory semiconductors compared to 2006," when memory-chip "revenues helped to prop up the growth of the overall semiconductor industry," observed iSuppli Senior Vice President Dale Ford.

The poor results for memory chips in 2007 ended up restraining market growth, the iSuppli analyst said. "If memory were excluded from the revenue total, the semiconductor market would have grown by 2.4 percent in the fourth quarter," Ford said. "However, due to the influence of the weak memory market, total semiconductor market revenues fell by 0.5 percent in the fourth quarter."

Strong PC and Handset Sales

Chip sales during February in Japan and the Asia-Pacific region grew 8.2 percent and 1.2 percent, respectively, the SIA said. By contrast, semiconductor sales fell 3.5 percent in the Americas and declined 0.1 percent in Europe. In addition, chip sales in the rest of the world, including Eastern Europe, Africa and South America, "equaled the number of units sold in the U.S. in 2007 and is poised to surpass the U.S. market in PC unit sales this year," Scalise said.

Recent research reports from J.P. Morgan and Gartner point to strong international sales of PCs and mobile handsets in international markets, Scalise noted. In particular, the Asia-Pacific region has overtaken the U.S. as the largest market for PCs, he said.

"In handsets, the growth in international markets is even more dramatic, especially in the Asia-Pacific region," Scalise noted. "Unit shipments of handsets in the Asia-Pacific region will reach almost 540 million units in 2008 -- over three times more than the 161.6 million units they expect will be sold in the U.S.," he said.

In North America, the negative effects of high energy prices as well as the turmoil in the U.S. housing market have acted to reduce the discretionary spending of American consumers, Scalise said.

"While any decline in U.S. consumer spending has an effect on offshore electronics manufacturers, the rapid growth of sales of consumer electronics in other markets is continuing to create opportunities for semiconductor manufacturers," Scalise said.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Hardware
1.   US Orders a New Cray for Nuclear Arms
2.   PC Shipment Slump Bottoms Out
3.   IBM Earmarks $3B for Next-Gen Chips
4.   Most Networks Not Ready for IoT
5.   Gartner Sees Tablets Up, PCs Down


advertisement
Most Networks Not Ready for IoT
But most enterprises are prepared.
Average Rating:
Gartner Sees Tablets Up, PCs Down
But PC sales are recovering.
Average Rating:
Review: Tablets with Keyboard Covers
How do Surface and Lumia stack up?
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Report: Chinese Hackers Hit U.S. Personnel Networks
Hackers from China broke into the computer networks of the U.S. Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees.
 
Charges: Russian Stole Data from U.S. Restaurants, Zoo
A Russian man arrested on bank fraud and other charges hacked into computers at restaurants in Washington, hundreds of other retail businesses, and even the Phoenix Zoo, authorities say.
 
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 

Enterprise Hardware Spotlight
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 
Gartner Sales Study Sees Tablets Up, PCs Down but Recovering
Are PCs on the comeback trail? That depends on how you define "comeback." While tablet sales remain strong, Gartner's latest study found PC shipments aren't dropping as fast as they did last year.
 
Review: Warming Up to Tablets with Keyboard Covers
If you've ever thought tablets with keyboard covers were just a poor excuse for a laptop, think again. Nokia's Lumia 2520 comes with an optional keyboard cover that just may change your mind.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.