DECEMBER 2--Global semiconductor sales reached $12.5 billion in October 2002, a 1.8% sequential increase from the $12.3 billion in revenue reported in September and a 20% increase from the $10.4 billion total recorded in October 2001, reported the Semiconductor Industry Association (SIA; www.sia-online.org). If there are any doubts remaining about the strength of the global chip industry, a healthy recovery continues as we move into the fourth quarter," stated SIA president George Scalise. "Having achieved three quarters of continually rising growth, including 5.6% in the first quarter, 5.8% in the second, and 8.2% growth in 3Q02, our forecast calls for moderation in the year's final quarter, consistent with normal year-end patterns--steady but sustainable growth across broad product sectors."

The wireless sector is growing the most briskly, according to the SIA. New subscriber growth continues to break previous norms in Asia, and replacement units now account for more than half of all cellular handset sales, as consumers seek to replace older units with new phones offering additional features and functionality. PCs continue to be the single largest consumer of semiconductors and currently account for 30% of total chip consumption.

Chip sales rose 1% in October in the Asia-Pacific market and sales were up 2% in Japan. Semiconductor sales in Europe grew 6.2% led by a strong wireless market, while sales in the Americas rose 0.5%, as electronic equipment production continues to migrate from US-based facilities to the Asia-Pacific region.

Mon Dec 02 13:25:00 CST 2002