Memory slump to blame for stunted semiconductor growth

According to the SIA, the semiconductor industry would have had an 11 per cent year-on-year level of growth, were it not for the memory sector dragging it down to 3.8 per cent growth worldwide year-on-year.

A 30.6 per cent increase in unit shipments was not enough to offset a DRAM drop of 37.4 per cent year-on-year, with 512Mb DRAM prices slumping even lower to a 73 per cent year-on-year decline according to Micron Technology.

Memory sales were not down across the board, however, as sales of NAND flash memory revenue grew by 45.9 per cent in the first quarter, and unit shipments were up by 46 per cent since last year. ASPs for 8Gb NAND, however, were down by 70 per cent from March 2007, with overall ASP decline of 52 per cent.

George Scalise, president of the SIA said computer unit sales had increased by 12 per cent in Q1 of 2008, to reach 71.1 million units. He noted that although there had been strong sales outside the US, the market slowdown was having an effect, as the US market represents about 21 per cent of global demand for computers. This number is down by 10 per cent from just five years ago.

Nevertheless, microprocessors were also still going strong with increased growth of 13.4 per cent year on year. Strength in the PC market was reflected in sales of microprocessors, which increased by 13.4 percent year-on-year. Microprocessor average selling prices (ASPs) were down only by a marginal 3.5 per cent since last year and units were up by 17.4 percent.

L’Inq FabTech