Semiconductor Sales Plunged 9.8% in Nov.

San Jose, Calif. -- Semiconductor sales plunged nearly 10% in November from a year ago, led by a steep decline in revenue from memory chips, the Semiconductor Industry Association reported Friday.

The news marks the second monthly sales decline for chip companies, whose stocks were battered in 2008 as the recession sapped demand for consumer electronics and prices declined dramatically in some markets.

Sales in November totaled $20.8 billion, down 9.8% from the same month a year ago and 7.2% from October. Excluding memory chips, the worst hit by falling prices, sales declined by 4.8% to $17.3 billion.

"Not all segments of the industry are being affected equally by the downturn," SIA President George Scalise said in a statement. "The memory market which has been under severe price pressure throughout (2008) has seen sales decline significantly while many other product sectors have year to date sales above 2007 levels."

Chip sales during the first 11 months of 2008 inched 0.2% higher to $232.7 from the year-ago period. Excluding memory products, sales rose 5.6%.

Pegging November's revenue decline as the worst since 2002, JPMorgan analyst Christopher Danely cut his sales estimate for the full year 2008 to a 2% drop, from a previous forecast of 1% growth. In 2009, Danely now expects a 20% decline, instead of a 17% drop, with a price decline of 9%.