Growth of the global semiconductor industry nearly halved in April, according to a survey on Monday, but the sector is hopeful that it can still increase revenues for the full year. Microchip sales rose 6.8 percent in April, compared with the year-ago period, to $18.15 billion, the World Semiconductor Trade Statistics (WSTS) group said. It compares with 12.8 percent growth notched up in March. The slowdown also showed in the month-on-month comparison, with revenues down 1.2 percent compared with March sales.
The WSTS is an alliance of the world's main chip makers, representing around 85 percent of global sales. Growth had been expected to come down during the year, because of tougher year-on-year comparisons. Sales accelerated during last year, pushing the sector to a new annual revenue record of $213 billion.
By the end of 2004, however, sales slowed sharply due to oversupply to electronics manufacturers, which saw demand for their products dwindle, making the sector very cautious for 2005.
Most analysts expect a more or less flat chip market this year.
"(But) April data for the European market published by WSTS remain above expectation, confirming the soft landing scenario for the European industry for 2005," the European Semiconductor Industry Association (ESIA) said in a statement.
"Although growth rates remain on the decline, they are still on the positive side, indicating the possibility of small but positive growth at the end of the year," it added.
European revenues increased 3 percent compared with a year ago, less than half of the 7.3 percent in March but above the 1 percent sales increase in Japan and the United States.
In the key Asia Pacific region, where more than twice as many chips are sold as in any other geographic area, revenue growth remained even more healthy, at 14.4 percent, albeit below the 22.4 percent year-on-year sales increase in March.