SAN JOSE - Worldwide sales of semiconductors grew 13.2% in the first quarter  compared to the same period of 2004, the SIA reported today. Global sales of semiconductors in the first three months were $55.3 billion, up 0.4% sequentially from the fourth quarter of 2004.

March sales, at $18.4 billion, were up 2.2% from February, on heavy consumer spending.
"Worldwide sales of semiconductors continued to outpace forecasted levels in the first quarter," said SIA president George Scalise in a statement. "The first quarter is historically a relatively weak one for the microchip industry. The unexpected strength of semiconductor sales, with 13% growth over a very strong period a year ago, is a good sign for the industry."

The main factors underlying the industry's relatively strong first-quarter sales were higher than expected sales of wireless handsets, personal computers and consumer electronics. "Consumer spending on electronics was stronger than historical patterns for the first quarter despite reports of declining consumer confidence," said Scalise.

The U.S. GDP grew 3.1% in the first quarter.
 
"We expect sales in the current quarter will be flat to nominally higher than the first quarter. As we reported last month, our earlier projection for flat sales for the year as a whole now appears to have been overly cautious," Scalise said.

The SIA will release an updated forecast on June 8.

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