Chip Sales Rose 2.2 Percent In July

Global chip sales grew to $20.6 billion in July, a 2.2 percent increase for the same period last year and a 3.2 percent increase since June 2007, according to a Semiconductor Industry Association (SIA) report. SIA attributes the growth to increased sales of microprocessors, MOS logic devices and NAND flash memory products. Several segments of the chip market saw prices climb, while price erosion in the memory sector slowed significantly, according to SIA president George Scalise. Microprocessor sales grew by 5 percent from June and average selling prices (ASPs) increased by more than 3 percent. DRAM ASPs continued to decline but price attrition slowed to less than 2 percent from June. NAND flash memory shipments were flat but ASPs jumped more than 8 percent, and revenues increased by 8 percent from June. SIA forecasted sub-prime mortgage fall-out may hinder consumer electronics purchases, but at present, sales are currently in line with predictions. Scalise said chip sales are on track with the SIA forecast of 1.8 percent growth in 2007.