KUALA LUMPUR: Global sales of semiconductors fell 28.6% to US$15.3 billion in January from US$21.5 billion a year ago, the Semiconductor Industry Association (SIA) reported.

In a statement posted on its website on March 3, the US-based SIA said global sales declined by 11.9% from December when sales were US$17.4 billion.

The sharpest decline was in Europe, where sales fell 33.9% on-year, Asia-Pacific 30.7%, Americas 25.9% and Japan 21.2%.

SIA president George Scalise said worldwide semiconductor sales in January, historically a relatively weak month for the industry, reflected a continuing erosion of consumer confidence and the effects of the global economic recession.

“Sales declined across the entire range of semiconductor products, as sales of important demand drivers such as personal computers, cell phones, automobiles and consumer items remained under pressure.

 “Inventory levels are very low and there are some signs that forward visibility is improving,” Scalise said. 

SIA said the Economic Recovery Act recently passed by the US Congress and signed by President Barack Obama and measures adopted in other countries had the potential to drive future demand for semiconductors while addressing important issues such as energy, health care, and infrastructure improvements.

On Feb 20, the North America-based manufacturers of semiconductor equipment posted US$285.6 million in orders in January 2009 on a three-month average basis.

The book-to-bill ratio was 0.48, according to the January 2009 Book-to-Bill Report, which

“A book-to-bill of 0.48 means that US$48 worth of orders were received for every US$100 of product billed for the month,” it said.