European chip sales slow down

Semiconductor sales in Europe last year grew more slowly than the worldwide average, dragged down by slow growth in microprocessors in the region, according to a report from the European Semiconductor Industry Association.

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Semiconductor sales in Europe last year grew more slowly than the worldwide average, dragged down by slow growth in microprocessors in the region, according to a report from the European Semiconductor Industry Association.

Worldwide sales of semiconductors grew 8.9 per cent in 2006 over the previous year, reaching $247 billion (£126bn) in sales. But in Europe, sales were up just 1.6 per cent in 2006, the group said.

The increase was driven by digital signal processors (DSPs), dynamic RAM, flash memory, discrete devices such as power transistors, and application-specific chips for consumer, automotive and industrial applications.

While sales were low in December, they helped boost the yearly figure because they were better than the previous year. In the final month, European semiconductor sales were $3.5bn (£1.78bn), down 5.1 per cent over November. However, December sales were up 5.4 per cent compared to the same month in 2005.

December produced low sales around the world but were still better than 2005. For the month, worldwide semiconductor sales were $21.7bn (£11.1bn), down 3.6 per cent compared to November but up 9 per cent over December 2005.

The report comes amid mixed results from chip-makers around the globe for the final quarter of 2006. Germany’s Infineon Technologies AG reported a 27 per cent increase in sales for its quarter that ended 31 December2006 compared to the previous year, despite a significant drop in sales from its group that supplies chips for mobile phones. But Taiwan Semiconductor Manufacturing posted a 5.4 per cent drop in sales for the same period compared to the corresponding quarter in 2005.

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