Semiconductor chip sales increase 9.4% -- report

Strong demand for mobile phones and other consumer electronics fueled a 9.4% increase in global chip sales in May, the US-based Semiconductor Industry Association said in an Associated Press report.

The report said total sales for the month were $19.7 billion, up from $18.1 billion last year.

"Worldwide sales "&brkbar; continued to reflect generally favorable worldwide economic conditions," said George Scalise, SIA's president. "As consumer products drive an increasing proportion of microchip sales, the growth of the semiconductor industry more closely reflects overall economic growth."

Analog chip sales jumped by 21.5% during the month, while digital signal processors increased 13.7%. Both types of chips were used in mobile phones, the report said.

Sales of PC microprocessors dropped 2% during the month, reflecting an inventory correction and aggressive pricing.