Sales of CPUs, memory forecast to decline

THE INFLUENTIAL Semiconductor Industry Association (SIA) revised its forecast for global sales of chips downwards from 10 per cent to 1.8 per cent in 2007.

While demand for chips is strong, price attrition in CPUs, DRAM and NAND are affecting its forecast.

Total sales of CPUs will decline by 1.6 per cent because of intense competition. DRAM sales are also under significant price pressure with total sales growing by two per cent this year.

The SIA said average selling prices of DRAM in April this year fell by 33 per cent compared to December last year.

There is excessive stock and that will continue to affect average selling prices. µ