Chips hit squall in April

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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