Strong consumer sales help to boost revenues

Semiconductor sales up

Sales of PCs have boosted the performance of chip sales during October, according to the latest report from the Semiconductor Industry Association.

Sales topped $23.1 billion (£11.3 billion) during the month, a five per cent rise from the same period last year. Sales were up two per cent from the $22.6 billion (£) recorded in September.

Speaking about the performance, the SIA’s president, George Scalise said: "Consumers are reaping huge benefits from continued rapid price attrition in key sectors of the semiconductor market."

The DRAM market was one sector he highlighted. "Despite a 55 per cent year-to-date increase in unit shipments, DRAM turnover is up only four per cent over January through to October 2006 sales." DRAM manufacturers have had a particularly difficult year, with the price of DRAM falling consistently, and oversupply preventing market forces from pushing up the price.

He also highlighted a similar situation in the processor market, with sales up ten to 15 per cent, but with revenues falling to keep up, only seeing four per cent growth.

"Today’s typical PC costs less than a third of the typical unit of a decade ago, but is 100 times more powerful due to continuing advances in semiconductor technology that have driven down costs while significantly enhancing the speed, capacity and performance of the chips that go into computers," added Scalise.

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