Chip sales up 5.1 percent in October, still down for year

Worldwide sales of semiconductors rose to $21.7 billion in October, a 5.1-per cent increase from September when sales were $20.6 billion, the US-based Semiconductor Industry Association (SIA) said yesterday.

However, figures reveal that the October sales were 3.5 per cent below sales of $22.5 billion in October 2008.

Sales for the first 10 months of 2009 were $180.0 billion, a decline of 16.6 per cent from the $215.8 billion sales during the first 10 months of 2008.

All monthly sales numbers represent a three-month moving average of global semiconductor sales, said the San Jose, California-based SIA.

''October is historically a strong month for the semiconductor industry as electronic equipment manufacturer's ramp production for the holiday season. Inventory management throughout the supply chain has been very tight, and this may extend the fourth-quarter build season by a few weeks,'' said SIA president George Scalise.

''As Semiconductor sales are increasingly driven by the performance of the overall global economy our sales are reflecting the improved economic conditions in our world markets. Sales increased sequentially in all geographic regions,'' Scalise concluded.

Last month, the SIA releasing its annual forecast of global semiconductor sales had projected worldwide sales of $219.7 billion for 2009, a decline of 11.6 per cent from the $248.6 billion reported in 2008.

The forecast had projected that sales will grow by 10.2 per cent to $242.1 billion in 2010 and by 8.4 per cent to $262.3 billion in 2011.