Eurozone crisis hits chips in Q3
Global semiconductor sales in the second quarter fell by 3% year-on-year, which is particularly bad news for chip suppliers headquartered in Japan and Europe.
According to analyst IHS iSuppli, second-quarter revenue of $75.2bn was only 3% up on the typically weak first quarter.
“Amid rising economic concerns—including the Eurozone crisis, slowing manufacturing growth in China and stubbornly highly unemployment in the US – second-quarter growth for the global semiconductor industry was highly disappointing,” said Dale Ford, senior director of electronics and semiconductor research at IHS.
“Approximately two-thirds of the world’s semiconductor suppliers saw their revenues decline in the second quarter compared to the same period in 2011,” said Ford.
Global semiconductor revenue expanded by a marginal 1.4 percent in 2011. The latest IHS forecast calls for an even weaker market in 2012.
And Europe-based suppliers seem to be feeling the pain, as the Eurozone criss took its toll on chip sales.
“Among all semiconductor suppliers in Europe, combined revenue in the second quarter fell by 8.3% compared to a year earlier, the worst performance among all global regions, as shown in the figure attached. Two-thirds of all European suppliers saw their revenues fall during the period,” said IHS.
Top European semiconductor suppliers STMicroelectronics and Infineon Technologies saw double-digit year-over-year revenue declines of 16.4% and 12.9%, respectively.
In Japan half of the local chip suppliers experienced decreases in revenue. However, deep drops in revenue by leaders such as Toshiba, Renesas Electronics, Fujitsu Semiconductor and Mitsubishi magnified the overall decline.
“This has become a standard pattern for revenue growth for Japanese chip suppliers, as they typically see strong growth during their fiscal year ending March each year—followed by a decline during their first fiscal quarter ending in June,” Ford said. “The expectation is that Japanese suppliers will see a rebound in their revenues in the quarter ending in September.