SAN JOSE – Worldwide sales of semiconductors increased sharply in August to $18.6 billion, up 3.2% from July and 1.7% over last year, the Semiconductor Industry Association reported today.

Year-to-date semiconductor sales are up 5.8%, SIA reported, and on a record pace.


SIA president George Scalise said, “Worldwide sales of semiconductors remain on pace to exceed the record sales of 2004. While there are lingering concerns about the effects of high energy prices and the impacts of Hurricanes Katrina and Rita in the United States, end-markets for semiconductors continue to be very strong."

Scalise said PC unit sales continue to beat forecasts, resulting in strong increases in sales of microprocessors and DRAMs. Flash memory sales were also up sharply, reflecting robust sales of cell phones and consumer products such as MP3 players.

Overall capacity utilization increased from 85% to 89% percent in the second quarter. Leading-edge capacity utilization (defined as factories employing 160-nm and smaller geometries) was even higher, at 95%. SIA projects factory utilization continued to increase in the third quarter.

“With continued strong demand from end-markets, supply and demand in balance, coupled with inventories under control, the outlook for semiconductor sales remains strong, consistent with our forecast for 6% year-to-year growth,” said Scalise. “We remain cautious about consumer confidence, especially in the United States, where the effects of the two recent hurricanes and the subsequent sharp rise in gasoline prices are not reflected in the August sales numbers.”