By Graham Hayday, 3 July 2001 07:27
NEWS Global chip sales tailed off dramatically in May. According to the Semiconductor Industry Association, demand for processors fell by 20 per cent in dollar terms compared with the same month last year, and the situation is worse than April 2001, which saw a 10 per cent decline year on year. Double-digit declines in sales were seen in all the major chip-buying territories - the Americas, Europe, Japan and Asia. The fall in Asian sales was a disappointment because they had increased year-on-year in April, according to a report on FT.com this morning. Worldwide sales dropped from $15.9bn in May 2000 to $12.71bn. Merrill Lynch said shipments fell 24 per cent year on year, while actual billings fell 33.2 per cent. The broker warned that the industry's revenues this year could decline between 20 per cent and 25 per cent year on year during 2001. It said further declines in average selling prices would become one of the industry's biggest challenges.
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