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CPU margins under pressure again

ASPs fail to bite
Mon Jun 04 2007, 12:23
TRADE BODY the Semiconductor Industry Association (SIA) said worldwide chip sales fell by 2.1 per cent in April 2006, bringing in revenues of $19.9 billion.

The SIA said average selling prices (ASPs) declined in the major semi segments including CPUs, DRAMs and NAND memory.

These were all "experiencing ASPs that are declining more rapidly than historical patterns, offsetting growth in unit shipments."

According to the SIA, the ASPs for microprocessors have been under pressure for the last year. "January to April sales were down by nearly two per cent from the same period of 2006, while unit shipments were up by nearly 10 per cent."

And there's a similar pattern for DRAM and NAND flash. While DRAM unit shipments grew by almost 50 per cent compared to April 2006, total sales only grew by 27 per cent. NAND grew by 54 per cent but sales fell by one per cent compared to the same month last year. µ

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