Chip sales steady as DRAM prices plummet

FEBRUARY'S month on month chip sales were down by 4.9 per cent, Semiconductor Industry Association figures showed today.

In February, $20.44 billion worth of chips changed hands compared with $21.48 billion in January. But year on year February sales were up 1.5 per cent with the Asia-Pacific region sales up 1.2 per cent and Japan up 8.2 per cent. US sales were down 3.5 per cent and European sales flat. The monthly drop was seasonal, the SIA said.

Year on year unit shipments of DRAM were up 43 per cent but price erosion saw sales slump by 40 per cent thanks to average selling prices dropping by almost two thirds.

SIA President George Scalise said lower prices for DRAM 'masked underlying strength in global chip sales in February.'

The Asia Pacific region including China is expected to overtake the US in PC sales this year, while the rest of the world (Europe, Africa and South America) will be on a par with US sales. µ