SIA: Semiconductor growth almost best since 1990

The Semiconductor Industry Association (SIA) announced Monday that sales of semiconductor chips reached $13.4 billion in August, up from $12.9 billion the previous month. This is the sixth consecutive monthly increase, the SIA said. Year-over-year revenue increased 12.5 percent from $11.9 billion recorded in the same period a year earlier.

"With the exception of the peak year of 2000, this is the strongest monthly increase in August since 1990," SIA President George Scalise said in a statement. Sales in the Asia-Pacific region grew 6.4%, while the increase in Japan was just 1.6%. Europe posted an increase of 3.8% over July, and the Americas recorded a 2.5%increase. Sales of microprocessors were up 7.8% , and DRAM devices rose 11%.

Chips used in consumer devices such as DVD players and cameras rose by 5.3%, while flash memory chips were up 6.9% since July. The wireless sector posted a 4.7% growth. Last month, research firm Gartner observed that chip sales are showing definitive signs of a recovery. The firm was more bullish in its forecast, saying that the worldwide semiconductor market should reach $173 billion in 2003, compared with $156 billion last year, an 11% increase. The SIA has forecast a growth of 10.1% for 2003.