Chip sales point to high tech logistics boom
The semi-conductor industry has released its latest figures providing a good indicator of the prospects for logistics companies operating in the high tech sector. The Semi-conductor Industry Association (SIA) estimated that worldwide sales of semiconductors rose to $17.32 billion in May, an increase of 2.1% from the $16.97 billion reported in April and a 36.9% increase from May 2003.
Global sales of chips are now at their highest level since 2000. However there was a considerable variation in results across regions with Europe showing a month-on-month fall in sales of 1.2%. The Asia Pacific region, unsurprisingly given the pace of growth in the Chinese economy, saw the highest increase of 4.5%. Year to date sales showed a strong performance all round compared with the same period last year. European sales are up by 29.1%; the Americas by 26.5% and the Asia Pacific region by an impressive 54.2%.
Semi-conductors are not only important to express carriers and logistics companies in their own right due to the global nature of their supply chains, they are more importantly also a good indicator of future sales of consumer technology products. Semi-conductors form an essential part of personal computers, digital cameras, cellular phones as well as now a whole range of domestic white goods. Volumes for all companies involved in the distribution of high tech products are likely to rise commensurately and those companies with a high exposure to this sector (e.g. express carriers, forwarders and value added logistics operators) are likely to benefit the most.
