SAN JOSE, CA – Worldwide semiconductor sales plunged 28.6% year-over-year in January as consumer confidence continued to erode, the Semiconductor Industry Association reported today. Sales fell 11.9% from December, the trade group said.
For the month, the 90-day moving average sales were $15.3 billion, SIA said. The good news: Inventories are low, and visibility is slightly improving.
“Worldwide semiconductor sales in January, historically a relatively weak month for the industry, reflected a continuing erosion of consumer confidence and the effects of the global economic recession,” said SIA president George Scalise. “Sales declined across the entire range of semiconductor products, as sales of important demand drivers such as personal computers, cell phones, automobiles and consumer items remained under pressure.
“Inventory levels are very low and there are some signs that forward visibility is improving,” Scalise concluded.
SIA said the Economic Recovery Act recently passed by the Congress and signed by President Obama and measures adopted in other countries have the potential to drive future demand for semiconductors while addressing important issues such as energy, health care, and infrastructure improvements.