Networks
SHARE
Facebook X Pinterest WhatsApp

Do Chip Sales Signal a Turn?

Further evidence that a tech sector recovery, however weak, is beginning to take place came from the Semiconductor Industry Association, which reported that global chip sales rose 3.3 percent in March over February. However, it’s not party time just yet. Because January was such a disaster, and February not much better, the SIA reports Q1 […]

Written By
AP
Andy Patrizio
May 2, 2009
Datamation content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

Further evidence that a tech sector recovery, however weak, is beginning to take place came from the Semiconductor Industry Association, which reported that global chip sales rose 3.3 percent in March over February.

However, it’s not party time just yet. Because January was such a disaster, and February not much better, the SIA reports Q1 2009 sales were $44 billion, down 30 percent from $62.8 billion in the first quarter of 2008, and down 15.7 percent from the fourth quarter 2008 sales of $52.2 billion.

The $14.7 billion in March, a modest uptick from the $14.2 billion in February, comes across all regions except Japan, which is being hit with a very hard economic downturn.

Chip sales are considered a leading indicator of the health of the tech sector, since everything is built on semiconductors. Every desktop, laptop, server or smartphone has a number of chips in it. If sales can continue to bounce back, that would be a leading indicator of recovery.

However, a number of market researchers, including SIA and iSuppli as well as Gartner, IDC and In-Stat have all said it would be years before the market recovers to 2007 levels.

The first hints of recovery came earlier this month when Intel (NASDAQ: INTC) chief executive Paul Otellini said during the company’s conference call to discuss earnings that sales picked up during the quarter. By March, he said Intel was actually getting expedited orders, meaning customers were asking them to hurry with the delivery.

“The modest sequential rebound in worldwide sales in March suggests that demand has stabilized somewhat, albeit at substantially lower levels than last year,” said SIA President George Scalise in a statement.

“There are some bright spots such as smartphones and netbook PCs, but there are no clear signs of early firming of demand in other major end markets such as automotive, corporate information technology, and consumer electronics,” he added.

Scalise also said he expected global stimulus packages by various governments would begin to take effect beginning in 2010.

Article courtesy of InternetNews.com.

  SEE ALL
ARTICLES  
AP

Andy Patrizio is a freelance journalist based in southern California who has covered the computer industry for 20 years and has built every x86 PC he’s ever owned, laptops not included.

Recommended for you...

thumbnail 8 Best Network Monitoring Tools of 2024 (Free & Paid)
Networks
8 Best Network Monitoring Tools of 2024 (Free & Paid)
Liz Ticong
Apr 11, 2024
thumbnail OpenVAS vs. Nessus: Top Vulnerability Scanners Compared
Security
OpenVAS vs. Nessus: Top Vulnerability Scanners Compared
Leon Yen
Feb 23, 2024
thumbnail What is SOX Compliance? Requirements & Rules
Big Data
What is SOX Compliance? Requirements & Rules
Mary Shacklett
Oct 4, 2023
thumbnail The Top Intrusion Prevention Systems
Applications
The Top Intrusion Prevention Systems
Kashyap Vyas
Jun 14, 2023
Datamation Logo

Datamation is the leading industry resource for B2B data professionals and technology buyers. Datamation's focus is on providing insight into the latest trends and innovation in AI, data security, big data, and more, along with in-depth product recommendations and comparisons. More than 1.7M users gain insight and guidance from Datamation every year.

facebook
youtube
x

Company

About us Contact us Advertise with us

Categories

Trends Big Data Data Center AI Cloud Applications Mobile Open Source Security Storage

Property of TechnologyAdvice. © 2025 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

Terms of Service Privacy Policy California - Do Not Sell My Information