Chip Sale Forecast Down
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The Semiconductor Industry Association (SIA) is predicting a 4-6% reduction in chip sales against December 2004. This follows an announcement of an 14.6% increase in December against the previous December. However the sales figure of $18.37bn was down on November's $19..02bn. All the major markets saw a reduction in all major regions. Japan shrunk 2.2% to $3.86bn. Europe fell 2.1% to $3.53bn. Asia-Pacific dropped 3.6% to $7.75bn. The biggest drop however, was in the Americas which saw a 6.2% drop to $3.24bn. Over the year, sales totalled $212.7bn, a record. The corresponding total for 2003 was $166.4bn. Most of the growth had come during H1. However excessive buying had led to a reduction in H2. 2005 sales are forecast by the SIA to fall by up to 6% sequentially. Mainly because of inventory reduction efforts.
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