Chip Sales Increase 8 Percent Amid Strong Device Sales

August 4, 2008 12:20 p.m. EST

New York, NY (AHN) - Despite sinking memory prices and a sluggish North American economy, semiconductor sales for such consumer items as PCs and cell phones rose 8 percent in June, compared to a year ago. Global sales totaled $21.6 billion dollars, according to the Semiconductor Industry Association.

If lower memory chip prices weren't factored-in, sales would have increased 12 percent for the month, the group said.

However, the SIA said despite the slowing economy, there was healthy growth in PC and cell phone demand. Computers account for 40 percent of chip sales while 20 percent of silicon goes to mobile handsets.

Sales in the Asia-Pacific region grew 13 percent during the month and the industry association predicts booming economies in China and India would push up sales by 19 percent by year's end.

A maturing market in industrialized nations caused chip sales to increase just 5.1 percent in Europe and only 2.8 percent in the Americas and Japan.