$275 billion sales for 2001 global chip market

Wednesday, 06 February, 2002

Worldwide sales of semiconductors in the fourth quarter 2001 were unchanged from the third quarter at $60 billion, ending three quarters of double digit declines.

Together, the Americas, Europe and Asia Pacific regions grew 4% in the fourth quarter, sequentially. In Japan, recessionary pressures pulled semiconductor demand down 12% for the quarter.

"Product comparisons show a number of improving trends in the fourth quarter," said George Scalise, SIA president. "Key demand drivers, wireless handsets and personal computers, bottomed out in the third quarter and recorded double-digit increases in the fourth quarter. Semiconductors used in these products, including microprocessors, digital signal processors, and DRAMs, also registered double-digit gains. In addition, in a challenging environment, US companies were able to increase global market share from 50 to 51%."

Scalise added, "Increased sales in markets outside Japan indicate that demand for semiconductors in the major economies is pulling out of a downturn and began to grow in the fourth quarter. We expect flat to slightly up sales in the first quarter of 2002, another indicator of recovery since this is traditionally a seasonally flat to down quarter."

Compared to November 2001, worldwide sales in December were down 4%, consistent with seasonal industry patterns. "Except for 1999," Scalise noted, "monthly semiconductor sales in December for the past six years have registered a decline just as we are seeing this year."

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