Demand for chips strengthens
Industry organisation figures show worldwide semiconductor sales on the rise
The global chip market is looking brighter than in recent months and appears to be on track for double-digit growth in 2003, according to the latest figures from the Semiconductor Industry Association (SIA).
Worldwide semiconductor sales climbed to $12.1bn (£7.5bn) in March, a 2.6 per cent rise on the $11.8bn recorded for February. For the first quarter, sales were $36.4bn, up by 13 per cent on the same period in 2002 but down by 3.2 per cent on turnover for Q4 2002.
A post-seasonal drop-off is expected, but consumer PC sales are still riding high and are helping to prop up chip sales in what has been an uncertain global business climate.
"A number of the products that were weak in February reversed course, showing renewed demand in March.
"The sequential revenue increase we recorded in March, and the 13 per cent year-on-year revenue gain for the first quarter, under trying global geopolitical conditions, demonstrates once again the resilience and strength of this industry," said George Scalise, president of the SIA.
"We continue to expect double-digit growth for 2003, led by continuing increases in consumer purchases of PCs, an anticipated corporate PC upgrade cycle later in the year, and a strong global wireless sector.
"The emerging Wi-Fi sector will add strength to the market as new products are introduced during the year."
The corporate upgrade cycle is well overdue but is expected to kick in during Q3, and there are some signs of spending in the public sector, according to Seamus Twohig, director of product marketing manager at distributor Ideal.
"In the UK we have seen some growth in government buying, with some spending also in health, education, and the MOD/military sector with war procurement.
"Overall, we have not seen any tangible evidence that the spend is on. I expect Q2 next year to be supply-led rather than demand-led," Twohig said.
Sales in Europe, the world's third largest market, rose by 11.3 per cent in March, while sales in the Americas fell by 8 per cent. The decrease reflected the migration of component sourcing, design services, and electronic equipment production to Asia.