Chip Industry Had Tough Nov '11; Expects Long Term Growth

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The Semiconductor Industry Association (SIA) reported a sequential decline in chip sales, when revenues of the industry decreased globally from $25.7 billion in October to $25.1 billion in November 2011.

Compared to last year, the sharp was even greater: The global chip industry sold semiconductors for $25.93 billion in November 2010. The good news is that, on a year to date basis, chip sales are 0.8 percent ahead of 2010.

"Supply chain disruptions resulting from the floods in Thailand have impacted semiconductor sales in the near term, however OEM's are expected to recover production losses over the course of the next few months," said Brian Toohey, president of the Semiconductor Industry Association. "November sales were additionally affected by the continuing European financial crisis which is having a broad impact on other economies and global demand."

The SIA believes that the chip industry has ended 2011 with a gain over 2010. Even if the trade organization believes that there are "near term challenges", it stated that 2012 will bring "further improvement".

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November 2011Header Cell - Column 1 Header Cell - Column 2 Header Cell - Column 3
BillionsRow 0 - Cell 1 Row 0 - Cell 2 Row 0 - Cell 3
Month-to-Month SalesRow 1 - Cell 1 Row 1 - Cell 2 Row 1 - Cell 3
MarketLast MonthCurrent Month% Change
Americas4.674.59-1.8%
Europe3.083.03-1.8%
Japan3.883.82-1.7%
Asia Pacific14.1013.70-2.9%
Total25.7425.13-2.4%
Row 8 - Cell 0 Row 8 - Cell 1 Row 8 - Cell 2 Row 8 - Cell 3
Year-to-Year SalesRow 9 - Cell 1 Row 9 - Cell 2 Row 9 - Cell 3
MarketLast YearCurrent Month% Change
Americas4.714.59-2.5%
Europe3.423.03-11.5%
Japan4.163.82-8.2%
Asia Pacific13.6413.700.4%
Total25.9325.13-3.1%
Row 16 - Cell 0 Row 16 - Cell 1 Row 16 - Cell 2 Row 16 - Cell 3
Three-Month-Moving Average SalesRow 17 - Cell 1 Row 17 - Cell 2 Row 17 - Cell 3
MarketJun /Jul /AugSep /Oct /Nov% Change
Americas4.584.590.1%
Europe3.073.03-1.4%
Japan3.643.824.7%
Asia Pacific13.7913.70-0.6%
Total25.0825.130.2%
Douglas Perry
9 Comments Comment from the forums
  • stevo777
    Well, Ivy-Bridge should do pretty well this year and stimulate some sales. There are way too many newly developing markets for any slowdown to last too long, in my view.
    Reply
  • billybobser
    from my point of view, old sata is still good enough, old usb2 is still good enough, 'olde' ddr3 still good enough, and graphics showing little improvement, screens still the same (lcd tv all in one) and good enough.

    What compelling reason is their to get new kit for a higher price (new AMD lol chips, hard drives skyrocket).

    The market is also pretty saturated (in 'developed' nations) where there is pretty much a PC/Laptop or 2 in every home.

    The only real reason to get new computers is for work (computational needs), playing facebook browser games along with games being held back by consoles are still fine.

    e8500 + 4870x2, not a single compelling reason to upgrade.

    That is, if the article were talking about desktops/laptops.

    Phones however, could always be better, and they are more suseptable to damage/loss. Not to mention the 'fad' factor. Growth in phones, but decline in desktops in my opinion, purely due to lack of anything domestic putting a strain on desktop resources.
    Reply
  • soccerdocks
    billybobserfrom my point of view, old sata is still good enough, old usb2 is still good enough
    USB2 is nowhere near good enough. Even USB 3 can be a limiting factor in transfer speeds.
    Reply
  • Novuake
    soccerdocksUSB2 is nowhere near good enough. Even USB 3 can be a limiting factor in transfer speeds.
    It very much depends on what you use your PC for.
    Reply
  • kawininjazx
    I agree with billybobser, most people don't even need the power that a first generation Core2 Duo offered. I mean, you can build a Pentium/4GB RAM/Win7 system for next to nothing, and people will think they have an i7 with 16GB of RAM.

    And USB2.0 is fine, as long as you aren't shooting more than a few gigs of data.

    I work on PCs full time and most people still have late XP/early Vista computers with first gen dual cores and 1 or 2GB of RAM and they are happy with them.
    Reply
  • jryan388
    I bought my i5 2500k in November...
    Reply
  • viridiancrystal
    Prices are dropping because to this too. Lower demand=lower price.
    Reply
  • eddieroolz
    Count me in to improve sales of semiconductor chips this year. Though that is predicated on HDD prices becoming lower.
    Reply
  • alidan
    billybobserfrom my point of view, old sata is still good enough, old usb2 is still good enough, 'olde' ddr3 still good enough, and graphics showing little improvement, screens still the same (lcd tv all in one) and good enough.What compelling reason is their to get new kit for a higher price (new AMD lol chips, hard drives skyrocket).The market is also pretty saturated (in 'developed' nations) where there is pretty much a PC/Laptop or 2 in every home.The only real reason to get new computers is for work (computational needs), playing facebook browser games along with games being held back by consoles are still fine.e8500 + 4870x2, not a single compelling reason to upgrade.That is, if the article were talking about desktops/laptops.Phones however, could always be better, and they are more suseptable to damage/loss. Not to mention the 'fad' factor. Growth in phones, but decline in desktops in my opinion, purely due to lack of anything domestic putting a strain on desktop resources.
    cpu, any near 3ghz dual core or quad core is good enough
    gpu, mid range 5770 is good for almost everything, and some newer at lowered details.
    ram, is there a real world difference between ddr2 and ddr3 outside of rendering?
    hdd, as long as there is space you are good with whatever
    ssd, as long as its boot the sataII is good enough
    usb2, for non storage is good enough


    now as for phones, the only part that needs to be better is the speaker and mic, i would pay for a quality speaker and mic, as they are the worst part of any phone today.

    KawiNinjaZXI agree with billybobser, most people don't even need the power that a first generation Core2 Duo offered. I mean, you can build a Pentium/4GB RAM/Win7 system for next to nothing, and people will think they have an i7 with 16GB of RAM. And USB2.0 is fine, as long as you aren't shooting more than a few gigs of data.I work on PCs full time and most people still have late XP/early Vista computers with first gen dual cores and 1 or 2GB of RAM and they are happy with them.
    personally, i just got win 7 64bit for more ram and an ssd. i have 8gb ddr2, and i am already hitting the 8gb range with how much i use when im not pushing my system, i could easily use a 16gb ram system, but wasn't paying 300$ for it.

    Reply