Echoing a trend in down revenues posted last month by the world’s largest maker of computer chips, a semiconductor trade group today announced that worldwide sales fell nearly 16 percent sequentially in the three-month period ending March 31, to $44 billion.

 

Officials with the Semiconductor Industry Association said chip sales for the first quarter also dropped nearly 30 percent year-over-year, falling from $62.8 billion. Even so, the trade group said, a closer look at the numbers shows a reason for hope: Semiconductor sales picked up 3.3 percent month-to-month, hitting $14.7 billion for March.

 

According to SIA President George Scalise, that modest sequential rebound in worldwide sales suggests that demand has stabilized somewhat, albeit at substantially lower levels than last year.

 

“While all major product sectors showed month-on-month growth, there continues to be limited visibility in end markets,” Scalise said. “There are some bright spots such as smartphones and netbook PCs, but there are no clear signs of early firming of demand in other major end markets such as automotive, corporate information technology, and consumer electronics.”

 

Market leader Intel Corp said last month – while posting revenues that fell 13 percent sequentially, to $7.1 billion, for the first quarter – that it also believed the market had bottomed out.

 

The Santa Clara, California-based company’s president and chief executive officer, Paul Otellini, said PC sales would return to normal seasonal patterns after the first quarter.

 

“Intel (News - Alert) has adapted well to the current economic environment and we’re benefiting from disciplined execution and agility,” Otellini said.

 

That may be true, but it’s probably very difficult for Intel to do much in areas such as Japan, where PC sales are falling off more sharply than in other regions.

 

According to the SIA, sales in all geographic regions except Japan showed month-to-month gains in March – but were sharply lower in Japan, reflecting a drop in the country’s economic output.

 

“The global chip industry continues to reflect the influence of the worldwide economic slowdown,” Scalise said. “We expect economic stimulus measures in the United States combined with other countries will begin to impact sales as we enter 2010.”