SAN JOSE – The Semiconductor Industry Association today reported that global sales of semiconductors reached $22.7 billion in November, up 11.3% from November 2005. Sales increased 3.1% from in October.

It was the fifth straight month of record sales and the forecast remains strong.  “Inventories are in line with current demand in most major product segments, and there are even signs of tight supplies in some memory products,” SIA president George Scalise said. “Global sales of semiconductors for the first 11 months of 2006 are in line with the SIA forecast of 9.4% growth for the year. 2007 is shaping up to be another good year for the industry with a forecast of 10% growth over 2006."

Through November, worldwide semiconductor sales totaled $225.1 billion, up 9.4% from 2005.

Consumer applications continued to drive demand of microchip sales in November. According to the Consumer Electronics Association, unit sales of consumer electronic products such as flat-panel displays and digital cameras were ahead of forecasts in the holiday season and resulted in strong revenue growth despite some erosion in the average selling price for some products. The CEA reported that U.S. November unit sales of digital cameras were up 30% over November 2005 and up over 40% for the first 11 months of 2006.

Semiconductor product lines that showed strong sequential growth included DSPs (digital signal processors), up 12.3%; DRAMs up 6.8%; NAND flash up 6.3%; and microprocessors, up 4.3%.

“Despite some signs of slower economic growth in the fourth quarter, consumer purchases of electronic products remained strong and again drove semiconductor sales to record levels,” said Scalise. “The latest Conference Board survey of consumer confidence reflected increasing optimism. An improving job market and indications of healthy economic growth going forward should contribute to stronger demand for semiconductor products which are increasingly driven by consumer electronic purchases.

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