Semiconductor sales slide as recession deepens

January sales of semiconductors fell by 28.8 per cent compared with last year

Semiconductor sales have crashed in the past year, according to the Semiconductor Industry Association (SIA).

Sales in January fell by 28.8 per cent compared with the same month last year, following a dismal December during which sales fell by 11.9 per cent on the year.

"Worldwide semiconductor sales in January, historically a relatively weak month for the industry, reflected a continuing erosion of consumer confidence and the effects of the global economic recession," said SIA president George Scalise.

"Sales declined across the entire range of semiconductor products, as sales of important demand drivers such as personal computers, cell phones, automobiles and consumer items remained under pressure.

"Inventory levels are very low and there are some signs that forward visibility is improving."

Sales fell fastest in Europe, which saw falls of more than a third. Japan was the best performing region, with sales down by 21.2 per cent.

The news comes amid major job losses and bankruptcy proceedings in the semiconductor industry.