SAN JOSE – Worldwide semiconductor sales rose 7.5% in May, year-over-year, the Semiconductor Industry Association reported today. Sales were up 2.8% sequentially. Excluding memory sales, ICs are up 12.3% through May.

Year-to-date sales are up 5.3% from 2007. Total semiconductor sales excluding memory products were up by 12.3 % year-on-year and 2.5% sequentially. SIA noted that May is historically a relatively strong month for semiconductor sales.

“Global sales of semiconductors grew at a healthy rate in May reflecting continued strong sales of consumer electronic products,” said SIA president George Scalise in a statement. “Despite reports of declining consumer confidence in the U.S., both disposable income and consumer spending rose in May. It is likely that the distribution of tax rebate checks to millions of Americans was a factor in increased consumer spending.

Scalise also pointed to demand for consumer electronics in China, Latin America and India. “Consumers account for more than half of all semiconductor sales worldwide. In the past, the US was the largest consumer market and the primary driver of demand. Today this country accounts for less than a quarter of total consumer demand,” Scalise noted.

Scalise said the decline in US electronics purchases relative to the rest of the world is a positive in that a slowdown won't have the same effect on the industry. The US's share of the PC market has fallen from 31% to 21%, and its share of cellphone unit sales has dropped from 21% to 13% in the past five years. “While we haven’t seen a slowdown in U.S. consumer spending on electronic products, a slowdown in the US today would not have the same impact it had in the past.

Unit demand for memory chips continues to be strong, SIA said. Pricing continues to sag, although capacity growth is slowing, which could boost pricing in the future.

BANNOCKBURN, IL – The IPC (Association Connecting Electronics Industries) announced May 2008 book-to-bill ratios for rigid PCB shipments was up 5.7% and while bookings for themonth were down 4.1% versus May 2007. Rigid PCB shipments were up 6.4% and bookings up 9.4%, year-to-date. The book-to-bill ratio for the N.A. rigid PCB industry fell however to 0.95 for May.
 
Flexible circuit shipments for May are down 3.5% and bookings are down 5.0% compared to May 2007. Year-to-date, flexible circuit shipments are up 3.3% and bookings are down 12.5%. The N.A. flexible circuit book-to-bill ratio is 1.01.
 
The combined (rigid and flex) industry book-to-bill ratio for May 2008 fell to 0.96.
 
“Rigid PCB shipments have outpaced bookings in the last two months, which drove down the book-to-bill ratio for the industry,” said IPC President Denny McGuirk. “Overall industry growth this year is still modest but steady.”

BRUSSELS – Industry leaders addressed concerns with the Öko-Institut report on the proposed expansion of RoHS substance restrictions at an IPC workshop on June 18.

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BANNOCKBURN, IL — Formula One, IndyCar and World Sports Car driver Derek Daly will keynote IPC Midwest in September, IPC announced.   Daly's talk will center on the role electronics will play in future high performance race cars. The talk takes place Sept. 24 at the Schaumburg (IL) Renaissance Hotel.   To Daly, electronics has been the greatest source of competitive edge in the motor sports industry. In 1987, Daly test-drove the car with the first electronic dashboard. He is one of a handful of world-class drivers to compete in all three of the most prestigious races in the world: Indianapolis 500, Grand Prix of Monaco, and the Le Mans 24-hour endurance race.   In 2008, he published his first book: Race to Win, How to become a Complete Champion.