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Chip sales leap 9.4 percent in May

Chip sales leap 9.4 percent in May

Semiconductor sales grew 9.4 percent year-on-year in May, fueled by strong demand for mobile phones and consumer electronics, an industry group said Monday.

Semiconductor sales grew 9.4 per cent year-over-year in May, fueled by strong demand for mobile phones and consumer electronics, according to the Semiconductor Industry Association (SIA).

Global chip sales rose to $US19.7 billion in May, up from $US18.1 billion during the same month last year, and also up slightly from April.

Healthy sales of personal computers also contributed to strong chip demand, the SIA said, pumping up DRAM growth to 13.7 per cent in May.

But heavy demand for chips isn't driving up prices. Users are benefitting from strong competition, since the average price of a notebook computer dropped below $US1000 for the first time, the SIA said.

Chip sales should remain strong going forward.

"We expect to see global semiconductor sales running nine per cent to 10 per cent ahead of last year's pace for the next several months. End market demand, inventory levels, and capacity utilization all indicate generally favorable conditions for the industry," president of SIA, George Scalise, said in a statement.

The industry association, which has represented chip companies since 1977, in June raised its forecast for 2006 worldwide chip sales growth to 9.8 per cent from 7.9 per cent.


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