In-Stat/MDR: DSL IC Market Rebounding, Shifting to VDSL

The market for DSL ICs rebounded, in terms of port
shipments, in 2002, after a difficult 2001 that was characterized by an
excess of inventory in the face of slower overall deployment of ADSL
than had originally been expected at the height of the of telecom
“bubble” in 2000. The high-tech market research firm finds that total
silicon shipments rose from 38.1 million ports in 2001 to 50.0 million
ports in 2002. However, due to declining ASPs, total DSL IC revenue fell
from US$ 699.0 million in 2001 to US$ 594.9 million in 2002.

In-Stat/MDR expects the total market for DSL ICs to grow from
about 50.0 million ports in 2002 to 107.9 ports by 2007. Likewise, total
revenue is expected to rise from about US$ 594.9 million in 2002, to US$
732.8 million by 2007.

Chip equipment: down in Q2 2003

Worldwide semiconductor equipment sales, excluding test equipment, fell to $4.1 billion in the Q2, down 9% from the same period a year ago. And compared with the previous quarter, equipment sales fell a whopping 20%, according to Gartner. “The second quarter was far worse than we, or anyone else, thought it would be. We were expecting a 6% sequential decline, not 20% ,” said Klaus-Dieter Rinnen, managing vice president of Gartner’s semiconductor manufacturing and design research group.

In-Stat/MDR: CMOS image sensor market to grow

The image sensor market has seen
continued growth over the past year, marking a bright spot in the
beleaguered semiconductor sector, reports In-Stat/MDR. Overall, the high-tech market research firm
expects the image sensor market to grow at a 28.1% annual rate in unit
terms through 2007. However, due to ASP erosion, annual revenue growth
will be just 8.2%.

SIA: Semiconductor growth almost best since 1990

The Semiconductor Industry Association (SIA) announced Monday that sales of semiconductor chips reached $13.4 billion in August, up from $12.9 billion the previous month. This is the sixth consecutive monthly increase, the SIA said. Year-over-year revenue increased 12.5 percent from $11.9 billion recorded in the same period a year earlier.

“With the exception of the peak year of 2000, this is the strongest monthly increase in August since 1990,” SIA President George Scalise said in a statement. Sales in the Asia-Pacific region grew 6.4%, while the increase in Japan was just 1.6%. Europe posted an increase of 3.8% over July, and the Americas recorded a 2.5%increase. Sales of microprocessors were up 7.8% , and DRAM devices rose 11%.

Chips used in consumer devices such as DVD players and cameras rose by 5.3%, while flash memory chips were up 6.9% since July. The wireless sector posted a 4.7% growth. Last month, research firm Gartner observed that chip sales are showing definitive signs of a recovery. The firm was more bullish in its forecast, saying that the worldwide semiconductor market should reach $173 billion in 2003, compared with $156 billion last year, an 11% increase. The SIA has forecast a growth of 10.1% for 2003.

Imaging market

The midrange to upper-end of the printing and imaging market amounts to about 130 million units per year and consumes about $5 billion worth of semiconductors.

iSuppli: DRAM revenue falls, market disappears

According to DRAMeXchange, an online clearing house for the chips, the portion of DRAM sold by contract rose to 77% in August from 67% in January, while the spot market contracted to 23% from 33%. During the most recent pricing talks, contract prices rose only 1.2% for the major varieties – double data rate chips that run at speeds of 266-, 333-, and 400-megahertz – according to DRAMeXchange, while market watchers were expecting a 5% rise. Contract prices are negotiated every two weeks.

iSuppli has forecast DRAM revenue to rise 8.3% on year in 2003 to $16.7 billion.

July Global Chip Sales Up 2.9 Percent

Global semiconductor sales totaled $12.9 billion in July, up 2.9 percent from $12.544 billion in June 2003 and up 10.5 percent from July 2002, according to the European Electronic Component Manufacturers Association (EECA) and the European Semiconductor Industry Association (ESIA), quoting figures attributed to the World Semiconductor Trade Statistics (WSTS) organization.

The WSTS figures, normally first disclosed each month by the Semiconductor Industry Association, are presented as a three-month moving average of monthly sales activity. They are compiled that way to smooth variations due to companies’ sales reporting calendars.

For the first seven months of the year the worldwide chip market grew 11.6 percent according to the figures. This is ahead of the SIA’s figure for 2003 growth over 2002 of 10.1 percent but consistent with the industry group’s optimism for the third quarter.

The July numbers show that the recovery is still being driven by Asia with the North American market falling on long-term comparisons although slightly up compared with June. The European market was up strongly in dollar terms but also down strongly based on euro currency.

Japan, which recorded sales of $3.119 billion in July, was the fastest growing region – 4.8 percent up on June and 17.2 percent compared with July 2002. Japan’s year-to-date total is up 24.5 percent on the same seven-month period in 2002.

Asia-Pacific, the largest region with July sales of $4.814 billion, grew 2.9 percent compared with June 2003 and 12.9 percent compared with July 2002. Asia-Pacific’s year-to-date total is showing 14.4 percent growth compared with the same period in 2002.

In July, the North American market reached $2.506 billion, which was up 1 percent on the previous month but down 3.5 percent compared with July 2002. The Americas region’s year-to-date total is running 5.7 percent down on the same period in 2002.

European chip sales in July totaled $2.466 billion, according to the WSTS numbers. That corresponds to a 14.4 percent increase compared to the same month last year. Year-to-date semiconductor sales increased by 13.0 percent compared to the same period last year. Monthly sequential growth was 2.3 percent, EECA said.

However, the exchange rate of the euro compared to the dollar has a significant impact on the data, EECA said.

Measured in euros, Europe’s semiconductor sales in July were 2.136 billion euros, a decline of 5.1 percent versus the same month a year ago. On a year-to-date basis, Europe’s semiconductor sales have decreased by 7.1 percent versus the same period last year. Monthly sequential growth in June was 0.9 percent.