Global chip sales rise in May, group says

SIA says chip sales rose in May led by mobile phones, despite slumping DRAM prices.

Global semiconductor sales rose in May due mainly to a blistering mobile phone market, according to the Semiconductor Industry Association (SIA).

Chip sales rose to US$18.05 billion in May, up four percent from US$17.34 billion during the same month last year, SIA said. Strong monthly sales growth should help pace overall growth for the worldwide chip industry in 2005. A number of market researchers and organizations like SIA boosted their full year forecasts for the chip industry in recent months.

Last month, the group forecast global chip industry would reach record sales of US$226 billion in 2005, up 6 percent from last year. It had previously predicted no growth for chips this year.

"Unit sales of cell phones have continued to outpace earlier forecasts, contributing to growth in sales of semiconductor products such as DSPs (digital signal processors) and analog chips, said George Scalise, president of SIA, in a statement.

However, slumping prices for DRAM (dynamic random access memory) chips dragged down the sector in May. Global chip sales fell by half a percentage point in May compared to April sales of $18.14 billion, the second consecutive monthly decline caused by falling DRAM prices.

The May-June time frame is normally among the weakest for DRAM due to a lull in the personal computer industry as companies begin planning for back-to-school and holiday sales in the second half of the year.

On the DRAM spot market, prices of the most widely used chips, 256M-bit DDR (double data rate) DRAM that run at 400MHz tumbled to their lowest price of the year on May 23, at US$2.25 per chip, compared with US$4.04 at the start of the year, according to DRAMeXchange, an online clearinghouse for the chips. The bad news for computer buyers is the chips have rebounded nearly 8 percent to US$2.42 by early Monday, and many people in the industry expect prices to continue to rise in the second half of the year.

"We feel that prices bottomed in June and will bounce back strongly," said Albert Lin, a vice president at DRAM maker ProMOS Technologies in Taiwan. "I still think this will be a profitable year for DRAM," he added.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?