SAN JOSE – Worldwide sales of semiconductors in August were $19.1 billion, up 5% sequentially, the Semiconductor Industry Association reported today.

Sales were up sequentially in all geographic regions.

Sales declined 16.1% year-over-year.

Year-to-date sales through August were down 21.3% to $133.8 billion compared to the same time last year. The rate of decline has slowed from the first six months of 2009, during which sales declined 25% year-over-year.

All monthly sales numbers represent a three-month moving average of global semiconductor sales.
 
“Continuing recovery of consumer spending led the sixth-consecutive month of sequential growth in semiconductor sales,” said SIA president George Scalise. “Various incentive programs for energy-efficient products, ranging from automobiles to home appliances, have bolstered demand for semiconductors, which deliver critical enabling technology for reducing energy consumption.
 
“Growing sales of netbook personal computers, which now account for approximately 17% of notebook PC unit sales, have created an important new market segment, filling a gap between ‘smart cellphones’ and conventional laptop PCs,” Scalise continued. “Personal computers have become especially attractive to consumers, as average selling prices for PCs have declined by around 14%, while memory content has increased by 25% during the past year. This translates into significantly more computing power at a significantly lower price.”

Scalise noted that consumers now account for approximately 50% of all PC unit sales.
 
“Notwithstanding the slow recovery of demand from the enterprise sector, we are encouraged that industry momentum has turned positive following the steepest downturn in more than a decade,” Scalise concluded.

HELSINKI – Videocon Industries Ltd. intends to invest 50 million euros for a stake in Elcoteq, according to published reports.
 
The deal is expected to close by year-end.
 
Reuters, quoting Elcoteq CFO Mikko Puolakka, said the deal calls for Viedocon to invest 50 million euros ($72.7 million) in the EMS firm.
 
It is unclear what stake the Elcoteq founders would keep if the agreement were finalized.
 
The news comes just two days after a deal with Kaifa in China fell through. When the Kaifa agreement failed to close, Elcoteq said a deal was about to be struck with a new investor.
 
 

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