November 1, 2005 – Worldwide sales of semiconductors increased 5.2% to $19.6 billion in September from the $18.6 billion reported in August, the Semiconductor Industry Association (SIA) reported today. Global chip sales increased by 5.6% from the $18.5 billion reported for September 2004. “Global semiconductor sales were very strong in September, despite earlier concerns that rising energy prices and declining consumer confidence would impact sales of electronic products,” said SIA president George Scalise.

Third-quarter sales at $58.7 billion were up by 8.9% from the second quarter, when total sales amounted to $55.6 billion. Semiconductor sales for the first nine months of 2005 totaled $167.6 billion, an increase of 6.1% from the first nine months of 2004.

“The September numbers show strong demand across most major product lines, reflecting continued strength in end markets,” continued Scalise. “Demand for chips used in a wide array of consumer products accounted for much of the September increase. Third-quarter personal computer unit sales continued to surpass expectations, increasing by 17% over the same period of 2004, while unit sales of cell phones increased by 25% from the third quarter of 2004. Sales of consumer electronics continued to be strong during the period. With industry sales for the first three quarters of 2005 running more than 6% ahead of the record sales of 2004, the industry remains on pace to achieve sales of $226 billion this year.”

SIA will release its global sales forecast for 2005 through 2008 on November 16.

The SIA’s Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, which represents approximately 66 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies’ financial calendars.