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By | Joe Fay 31st May 2005 14:30

Chips hit squall in April

SIA confident on full year

The chip industry’s fight back hit the ropes in April, dropping 1.2 per cent on the previous month.

Total chip sales were $18.2bn in April, compared to $18.4bn in March, the Semiconductor Industry Association reported today. This was 6.9 per cent up on the previous year, a comparatively limp rise.

The trade group put the drop down to a resumption of normal buying patterns in the cell phone market pushing ASPs down, and a decline in DRAM prices.

Nevertheless, the group insisted the outlook for the year as a whole remained strong, with excess inventory now flushed from the market and capacity utilization at reasonable levels.

Americas sales were $3.22bn, down 0.7 per cent sequentially, but up 1 per cent on the year. European sales were down 1.6 per cent sequentially, and up 3 per cent on the year. Japan was down 3.4 per cent on the month to $3.71bn, though this was up 1 per cent on the year. Asia Pacific sales were down 0.1 per cent sequentially to $7.9bn, but up 14.4 per cent on the year.

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