Global sales of semiconductors powered ahead in November, accelerating for the fourth straight month to grow to $16.1 billion, a 25.7 per cent increase compared with a year earlier, an industry group said today.
"2003's second half performance is one of the strongest on record for (the chip) industry," said Mr George Scalise, president of the North American Semiconductor Industry Association (SIA), using data from the World Semiconductor Trade Statistics group.
Demand was strong in most product areas with rising PC sales driving the surge. Chips for cars and cell phones sold especially well ahead of the Christmas and Chinese New Year holiday selling season.
Sales of memory chips was also above the normal seasonal increase, driven by strength in the personal computer market as well as portable music players and digital cameras.
The 26 per cent year-on-year growth, in line with expectations from most analysts, is up from around 10 per cent in June and July, after which sales began to accelerate.
Sales were also up from a month earlier, rising 4.5 per cent.
The sales data are a three-month-rolling average which softens the impact of sudden bursts of trading activity at the end of corporate calendar periods.
The SIA now expects chip revenues in 2003 to rise by more than the 15.8 per cent it had forecast a few months ago, which was already an upgrade of an earlier target.
Investment bank J.P. Morgan reiterated its 2003 chip sales forecast of $166.4 billion, up 18 per cent over 2002.