Chip sales hit by high gas prices

“THE SEMICONDUCTOR Industry Association (SIA) reported that global chip sales amounted to $213 billion, fuelled by high demand.

But George Scalise, who is head of the trade association, said that high gas prices could damage sales this year.

PCs, wireless chips and DRAM were the major contributors to the massive figure of chip sales. China and Taiwan, said Scalise, led the way.

Most analysts believe that 2005 will be less than rosy for the industry than the year before. Petroleum prices might be something to do with it, but we suspect oversupply and overcapacity are the real reasons.

Still, interesting what the SIA says about high sales of PCs. Most vendors we talk to continue to complain that things ain’t what they used to be.”