SAN JOSE – Worldwide sales of semiconductors grew 9.4% in May, the SIA reported today. Sales rose 0.7% sequentially, reaching $19.7 billion, on continued demands for new cellphones and other consumer electronics.

“Worldwide sales of semiconductors in May continued to reflect generally favorable worldwide economic conditions,” said SIA president George Scalise. “As consumer products drive an increasing proportion of microchip sales, the growth of the semiconductor industry more closely reflects overall economic growth."
Sales of analog chips grew 21.5% versus a yerar ago while DSP sales grew 13.7%. Analog devices and DSPs are important components of cellphones.

PC unit sales helped drive a 13.7% jump year-on-year in DRAMsales. Sales of PC microprocessors declined 2 % from May 2005, reflecting both robust competition and some inventory corrections, Scalise said.

In June the SIA raised its forecast for 2006 worldwide sales growth to 9.8%, from 7.9%. “We expect to see global semiconductor sales running 9 to 10% ahead of last year’s pace for the next several months. End-market demand, inventory levels, and capacity utilization all indicate generally favorable conditions for the industry,” Scalise said.