$10.22 Billion in Sales for Worldwide Semiconductor Markets in September 2001; Sales Expected to Grow in Fourth Quarter.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 1, 2001

Worldwide sales of semiconductors were $10.22 billion in September, a decrease of 44.6% from $18.44 billion a year ago, the Semiconductor Industry Association (SIA) reported today. On a month-to-month basis, September sales were 2.5% below the August 2001 level of $10.48 billion, an improvement from the 3.5% month-to-month decline reported in the previous month. This is the third consecutive month that this number has improved.

"A broad cross-section of products grew on a unit basis during the September quarter. We expect this trend to continue in the December quarter, and with inventories coming into balance, we believe this will lead to sequential quarterly growth in sales," stated SIA president George Scalise. He added, "Information technology products such as personal computers and wireless applications, combined with digital audio devices and other consumer products, will be the demand drivers that lead the industry into recovery."

Compared to September 2000, September sales in the European market were lower by 41.7%, the Americas market was down 58.6%, and Asia Pacific was down 30.9%. In the Japan market, sales declined 42.7% from last September.

From its beginning in the 1950s, the semiconductor industry has been characterized by a four-year cycle, sporadically modified by unexpected economic factors. The semiconductor industry has grown at a compound annual growth rate (CAGR) of 17% over the past 40 years.

The SIA's Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, which represents approximately 66 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies' monthly financial calendars.

September, 2001
Billions

Month-to-Month Sales

Market                      Last Month      Current Month     % Change
Americas                          2.61               2.44        -6.4%
Europe                            2.13               2.11        -0.7%
Japan                             2.58               2.41        -6.3%
Asia Pacific                      3.17               3.25         2.6%

Total                            10.48              10.22        -2.5%


Year-to-Year Sales

Market                       Last Year      Current Month     % Change
Americas                          5.90               2.44       -58.6%
Europe                            3.62               2.11       -41.7%
Japan                             4.21               2.41       -42.7%
Asia Pacific                      4.70               3.25       -30.9%

Total                            18.44              10.22       -44.6%


Three-Month-Moving Average Sales

Market                   Last 3 Months   Current 3 Months     % Change
Americas                          2.90               2.44       -15.9%
Europe                            2.52               2.11       -16.3%
Japan                             2.92               2.41       -17.4%
Asia Pacific                      3.23               3.25         0.7%

Total                            11.57              10.22       -11.7%

About the SIA

The SIA is the leading voice for the semiconductor industry and has represented U.S.-based manufacturers since 1977. SIA member companies comprise more than 90% of U.S.-based semiconductor production. Collectively, the chip industry employs a domestic workforce of 284,000 people. More information about the SIA can be found at www.semichips.org.