Semiconductor sales, unit sales, and average selling prices (ASPs) all declined in December 2004, marking a weak end to the semiconductor market in 2004.
The Semiconductor Industry Association (SIA) of the United States recently stated that the three-month average of global semiconductor sales in December was US$18.37 billion, a decrease of 3.5% from US$19.02 billion in November.
SIA predicts that semiconductor sales will continue to decline in the first quarter of 2005, possibly down 4-6% from the fourth quarter of last year, while full-year sales in 2005 will be the same as in 2004. SIA said that "actual" sales in the fourth quarter of 2004 were $55.1 billion, down 0.8% from $55.5 billion in the third quarter.
The semiconductor market slowed down due to seasonal factors, which was expected. According to a report from investment bank RBC Capital Markets Inc., "Semiconductor sales growth slowed further in December, increasing 15% year-on-year to $18.4 billion, and sales volume growth fell to 5% year-on-year. ASP fell 1% from the previous month."
According to RBC, total IC sales excluding DRAM fell 3% from November to 7.9 billion units, which is lower than the historical normal level for the same period. The 10-year average decline in IC sales in December is a 2% decline.
In the NAND flash memory market, sales in December fell 5% from November to 65 million units, and ASP rose 1% to $8.73, according to RBC.
According to RBC, shipments of mobile phone digital signal processors (DSPs) fell 12% from the previous month to 58.7 million units in December 2004. The report states: "DSP shipments remained sluggish in the fourth quarter, declining for three consecutive months."
Image sensor shipments fell 3% to 97 million in December, and ASPs fell 1%. The report said that shipments rose 6% in the fourth quarter, while ASPs fell 13%.
Analog shipments decreased by 2% and ASPs fell by 1%. The report states: "We believe that the market is still digesting excess inventory and expect the analog market to accelerate growth in the second quarter of 2005."
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Excerpted from HC Electronics Industry <|||>
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2005-2-3