Global semiconductor sales rise 17 percent QoQ

SAN JOSE, USA: Worldwide sales of semiconductors for the second quarter of 2009 were $51.7 billion, a 17 percent increase from the first quarter when sales were $44.2 billion, the Semiconductor Industry Association (SIA) reported today.Source: SIA

Second-quarter sales declined by 20 percent from the $64.7 billion recorded in the like period of 2008. Worldwide sales in June were $17.2 billion, an increase of 3.7 percent from May when sales were $16.6 billion, but 20 percent lower than the $21.6 billion reported for June 2008.

Year-to-date sales of $95.9 billion were 25 percent below the first six months of 2008, when sales were $127.5 billion. All monthly sales numbers represent a three-month moving average of global semiconductor sales.

“The fourth-consecutive monthly increase in sales is one indicator the industry is returning to normal seasonal growth patterns,” said SIA President George Scalise.

Scalise said focused supply chain management by both producers and customers helped to moderate the impact of the global economic recession on the industry. “Inventories have been closely managed, encouraging us to believe that the sequential increase in quarterly sales represents a gradual recovery of demand.”

Scalise noted that industry analysts have recently become more optimistic in their forecasts for key demand drivers.

"Consensus estimates for unit sales of PCs are now in the range of minus 5 percent to flat compared to 2008, whereas earlier forecasts were projecting year-on-year unit declines of 9 to 12 percent. In cell phone handsets, analysts now believe the unit decline will be in the range of 7 to 9 percent compared to earlier forecasts of a decline of around 15 percent. PCs and cell phones account for nearly 60 percent of worldwide semiconductor consumption," said Scalise.

Economic stimulus programs in China, including incentives for purchasing consumer products and investment in 3G/TDSCDMA communications infrastructure, have helped drive semiconductor sales in the world’s largest chip market.

“The global macroeconomic environment remains the key factor in determining the timing and rate of recovery for the semiconductor industry,” Scalise concluded.

iSuppli fast facts on AMD’s Q2 earnings

EL SEGUNDO, USA: To support journalists’ coverage of Advanced Micro Devices Inc.’s second-quarter results, iSuppli Corp. is providing the following facts:

· Financial analysts expect AMD to report second-quarter revenue that is lower compared to the same period in 2008. This would follow the pattern of AMD’s main competitor Intel, which last week reported that second-quarter sales were down 15.3 percent compared to the same period in 2008, amounting to a $1.4 billion drop.

The decline is largely due to a fall in PC shipments—the major factor driving sales of the computer-oriented microprocessors sold by AMD and rival Intel.

· Based on a preliminary forecast made prior to the end of the second quarter, iSuppli estimates global PC unit shipments in the second quarter decreased by 5.2 percent compared to the same period in 2008.

Shipments in the second quarter of 2009 declined to 66.5 million units, down from 70.2 million in the second quarter of 2008. iSuppli will update this estimate when companies report actual second-quarter results. Fig. 1 presents annual and sequential growth rates for global PC shipments.

iSuppli Fig. 1: Preliminary Worldwide PC Quarterly Growth Forecast 2008-2010 (Percentage Change in Revenue Measured in US Dollars)Source: iSuppli, July 2009

· Based on a preliminary estimate from iSuppli made before the end of the second quarter, global revenue for all types of microprocessors -- including but not limited to the X86 chips sold by AMD and Intel -- declined to $6.9 billion in the second quarter, down 20.8 percent from $8.7 billion during the same period in 2008.

iSuppli will update this estimate when companies report actual second-quarter results.

· AMD is likely to forecast a stronger second half. Following a weak first half, PC shipments are expected to recover in the final six months of the year, according to iSuppli.

· In the third and fourth quarters, PC shipments are expected to rise sequentially by 11 and 8.9 percent, respectively. On a year-over-year basis, PC shipments are expected to rise by 11 percent in the third quarter and by 8.9 percent in the fourth, as presented in Fig. 1.

· iSuppli predicts global microprocessor revenue will rise on a sequential basis to $7.2 billion in the third quarter, up 4.8 percent from $6.9 billion in the second, based on iSuppli’s preliminary estimate.

In the fourth quarter, global microprocessor revenue will rise by 2.5 percent to reach $7.4 billion. Fig. 2 attached presents iSuppli’s preliminary quarterly microprocessor revenue forecast.

iSuppli Fig. 2: Preliminary Worldwide Quarterly Microprocessor Revenue Forecast (Millions of US Dollars)**Comprises all types of microprocessors, including x86, RISC and other types of general-purpose devices. This market share information is not simply limited to x86 microprocessors used in PCs.
Source: iSuppli, July 2009

· Intel Corp.’s year-long streak of sequential market-share gains in the global microprocessor business ended in the first quarter of 2009, as chief rival AMD staged a comeback, according to iSuppli Corp.

· Intel in the first quarter suffered a 2.5 point decrease in global microprocessor market share, with its portion of global revenue declining to 79.1 percent, down from 81.6 percent in the fourth quarter of 2008.

Meanwhile, AMD gained at a nearly equivalent rate, with its share in the first quarter rising by 2.3 points to 12.8 percent, up from 10.5 percent in the fourth quarter.

ARC, Realtek to extend reach of ARC Sonic Focus audio technology into PCs, laptops

COMPUTEX TAIPEI 2009, SAN JOSE, USA & ST. ALBANS, UK: ARC International and Realtek Semiconductor, the premier silicon supplier for PCs and laptops, have agreed to bundle the ARC Sonic Focus suite of audio enrichment software with Realtek codecs shipped to its OEM and ODM customers globally.

In return, ARC has optimized its Sonic Focus software technology for the Realtek codec for PC and laptop applications. The companies’ efforts already have resulted in a major win with a tier one PC OEM, in which the Sonic Focus software suite on a Realtek codec will enhance the multimedia experience for consumers using music, movies, and games.

“ARC’s Sonic Focus audio enrichment software is generating significant attention among key players in the PC and consumer electronics industry as a means of reducing bill-of-materials costs,” said Wayne Lin, vice president of Computer Peripherals Business Unit at Realtek Semiconductor Corp. “Sonic Focus technology also can be tailored to a specific device so it delivers a unique, signature sound experience. This creates differentiation for the OEM and ODM customer and is a key reason we chose to partner with ARC for the PC and laptop market.”

“The agreement with Realtek is a significant endorsement of ARC’s audio quality strategy by a renowned industry leader in the PC and embedded markets. Working in partnership, ARC and Realtek will extend the benefits of Sonic Focus audio technology to a broader range of OEMs and ODMs developing PC and laptop applications,” said Michael Franzi, worldwide vice president of marketing at ARC International.

“In the highly competitive consumer electronics market, the key to winning is providing OEM and ODM companies with fast development and cost-effective solutions that improve the multimedia experience for consumers. Sonic Focus technology is unique in its ability to achieve these goals, while improving the consumer audio experience. It was developed over years of partnerships with music and movie industry icons and now delivers a powerful audio experience to worldwide consumers using a variety of electronics products.”

The ARC-Realtek agreement marks another milestone in ARC’s new direction of offering complete Sound-to-Silicon solutions to chip manufacturers and OEMs and ODMs customers.