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Chip Sales Start to Climb

Growing demand for PCs and broadband seen as reason for increase.

John Blau, IDG News Service

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Sales of semiconductors were up in June and during the entire second quarter, fueled in large part by growing demand for computers, the Semiconductor Industry Association said Monday.

Worldwide semiconductor revenue rose to $12.54 billion in the month of June from $12.49 billion in the same period a year earlier, SIA said in a statement.

Second-quarter chip sales in 2003 increased 3.2 percent to $37.6 billion from 36.4 billion in the first quarter of this year, and were up 10.4 percent from $34.1 billion in the second quarter a year earlier.

Helping Out

In the second quarter, computer sales rose 8 percent on a year-over-year basis, contributing to an 8.2 percent increase in microprocessor sales, according to SIA.

Strong demand for broadband services, requiring DSL and cable products, contributed to a 27.1 percent increase in programmable logic devices.

SIA forecasts worldwide semiconductor sales to increase 10.1 percent this year, and reach $205 billion by 2006.

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