July chip sales rise 2.9%

SEPTEMBER 9--Global chip sales reached $11.7 billion in July, a 2.9% increase over the June level of $11.4 billion, according to the Semiconductor Industry Association (SIA; www.semichips.org). On a year-to-year basis, chip sales in July were up 8% from the $10.8 billion in revenue recorded in July 2001, the first year-over-year increase since February 2001.

"The July data, and the year-on-year increase, confirm that a moderate but sustainable recovery continues, putting us on track for 7% to 9% sequential growth in the third quarter," said SIA president George Scalise. "Growth continues to be most robust in the digital consumer market, including DVDs, video games, and digital cameras, as reflected in increased demand for standard cells, consumer ASPs, optoelectronics, and flash-memory chips in the month."

Although the PC sector grew modestly, it continues to lag historical trends, reflecting subdued IT investment levels. As inventories and supply and demand come into balance, the pricing environment has stabilized.

For the year as a whole, worldwide chip sales are expected to exceed 2001 levels by 3%. The industry continues to forecast accelerated growth rates exceeding 20% in both 2003 and 2004, led by rapidly increasing demand for digital consumer and wireless products.