SAN JOSE – July sales of semiconductors were up up 11.5% worldwide to $20.1 billion, the Semiconductor Industry Association reported today. July’s sales were up 1.8% over June, and continued the record pace.

“The worldwide semiconductor industry is on track to surpass $240 billion in sales this year, which represents a new record,” said SIA president George Scalise. “Growth continues to be strong across a broad range of end markets and geographic regions as well, particularly Asia Pacific which is up over 13% year-on-year, and the U.S., where sales increased almost 18% over last year."


Semiconductors tend to be purchased in the same region they are used, analysts say.

“Capital spending and capacity utilization continue to be in balance,” Scalise said. Capital spending in 2006 is expected to amount to approximately 22% of semiconductor sales, which is in line with anticipated technology requirements and anticipated sales growth."

During the quarter capacity utilization edged up from 89% to 91%, with leading-edge capacity at 97%, SIA said.

“July sales reflect the historical pattern for the industry with growth in unit demand coupled with declining average selling prices. This trend helps make possible the very attractive prices for many consumer products. For example the average selling price for a PC declined by approximately 7% year-over-year,” said Scalise. Computer products represent over 40% of demand for semiconductors.