SAN JOSE – Worldwide semiconductor sales rose 7.5% in May, year-over-year, the Semiconductor Industry Association reported today. Sales were up 2.8% sequentially. Excluding memory sales, ICs are up 12.3% through May.

Year-to-date sales are up 5.3% from 2007. Total semiconductor sales excluding memory products were up by 12.3 % year-on-year and 2.5% sequentially. SIA noted that May is historically a relatively strong month for semiconductor sales.

“Global sales of semiconductors grew at a healthy rate in May reflecting continued strong sales of consumer electronic products,” said SIA president George Scalise in a statement. “Despite reports of declining consumer confidence in the U.S., both disposable income and consumer spending rose in May. It is likely that the distribution of tax rebate checks to millions of Americans was a factor in increased consumer spending.

Scalise also pointed to demand for consumer electronics in China, Latin America and India. “Consumers account for more than half of all semiconductor sales worldwide. In the past, the US was the largest consumer market and the primary driver of demand. Today this country accounts for less than a quarter of total consumer demand,” Scalise noted.

Scalise said the decline in US electronics purchases relative to the rest of the world is a positive in that a slowdown won't have the same effect on the industry. The US's share of the PC market has fallen from 31% to 21%, and its share of cellphone unit sales has dropped from 21% to 13% in the past five years. “While we haven’t seen a slowdown in U.S. consumer spending on electronic products, a slowdown in the US today would not have the same impact it had in the past.

Unit demand for memory chips continues to be strong, SIA said. Pricing continues to sag, although capacity growth is slowing, which could boost pricing in the future.

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