SIA President George Scalise cited demand for consumer electronics, PCs and cellphones – which account for about 80% of chip demand. LCD TV units are projected to increase 32% this year, and digital set-top boxes and digital still cameras 20%, PC unit growth 13%, and cellphones over 10%, he noted.

"We are enjoying the benefits of the strong 3.3% second quarter GDP growth in the US, and continued strength in world markets."

Overall capacity utilization was 89% – with leading edge above 95%.

SIA reported that sales of DRAMs and NAND flash memory continued to decline as a result of continuing price erosion. “Total semiconductor sales excluding memory products increased by 11.6% year-on-year and by 3.2% sequentially,” said Scalise. “The memory content of typical PCs and cell phones continues to increase. According to Micron Technology, the DRAM bit content of the average PC in 2008 will increase 56%, while the NAND flash content for the average cellphone will grow by 178%," Scalise concluded.