Q3 semi sales to grow 8.7%
Q3 chip sales will grow 8.7% on Q2, says IHS. Q2 grew 5.4% on Q1 and Q1 showed a 3.3% decline on Q4 2011. However, Q4 sales will only be 1% up on Q3.
Now is a good time to buy, says IHS, because prices for many components including capacitors, crystals, filters, magnetics, oscillators and PCBs all are set to decline at above-average rates in the third and fourth quarters.
“Electronic component pricing typically is stronger in the second half of the year, as suppliers strategically boost prices to take advantage of strong demand during the back-to-school and holiday build seasons,” says IHS’ Rick Pierson, “however, prices are weak this year because of a global economic malaise due to the crisis in Europe and a rapid slowdown of manufacturing in China. Although overall semiconductor revenue is expected to rise in the second half, pricing for many specific components is falling at a faster rate in reaction to poor economic news.”
The downward pricing trend is illustrated by oscillators, which are high-volume devices extensively used in electronic products ranging from wristwatches, to notebook PCs, to mobile phones.
Pricing for voltage-controlled crystal oscillator (VCXO) oscillators is set to decline by 2.% in Q3, by 2.4% in Q4, and by 2.6 in Q1 2013. This compares to a normal quarterly price reductions of 1.0 to 2.0 percent.
While the price decline for oscillators may appear to be only slightly greater than normal, this excess rate of decrease is sufficient to raise eyebrows among procurement managers, Pierson observed.
Pricing will continue to decline until Q2 2013, when a rebound is expected. Prices for capacitors, crystals, filters, magnetics, PCBs and oscillators all are expected to increase during Q2. In particular, pricing for TCXO oscillators is expected to rise by 2.7%.