We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,100 News Articles

Worldwide chip revenue plummets

Falling prices offset rising demand

Under pressure from falling prices, global semiconductor revenue fell to $20.09bn in February, down 6.5 percent from January, according to an industry report released yesterday.

Chip revenue was actually up 4.2 percent compared to February 2006, but it would have been much higher if low prices hadn't pulled the rug out from rising demand and unit sales, said the report from the Semiconductor Industry Association (SIA).

Compared to the same month last year, unit sales of microprocessors rose 8 percent but prices fell 15 percent, and unit sales of NAND flash chips rose 40 percent but their prices fell almost 50 percent.

"Year on year, we see evidence of the fiercely competitive market conditions - across the board unit sales in key products increased, while ASPs (average selling prices) declined," said SIA President George Scalise.

Geographically, the Americas showed the worst revenue slump, dropping 8.6 percent from February 2006 to February 2007, and Japan barely broke even with a 0.6 percent increase. Chip vendors relied almost entirely on a revenue increase of 7.2 percent in Europe and 10.1 percent in the Asia Pacific region, the SIA said.


IDG UK Sites

Windows 9 release date, price, features: Microsoft teases new OS ahead of 30 September unveiling

IDG UK Sites

From the iPhone 6 to the iWatch and a new Apple TV we look at the products Apple is set to launch...

IDG UK Sites

September 2014 creative trends: 5 things you must see

IDG UK Sites

What to expect from Apple in autumn/winter 2014: iPhone 6, iPhone Air, iWatch, iPad 6, new Apple...