Sales of NAND flash memory devices led the growth, as supplies tightened and prices firmed. NAND flash sales were up by 48% year-over-year, and up 19% from July, the firm says.

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SIA president George Scalise notes Credit Suisse and the Gartner Group have revised their forecasts for growth in unit sales of personal computers to 13%, from 11%, for 2007.

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“PC unit growth is proving to be very solid in 2007,” said Scalise. “PCs account for approximately 40% of all semiconductor sales and are growing most rapidly in emerging markets, where lower-cost PCs with lower silicon content have been selling well. Unit sales of cellphones are also running well ahead of our earlier forecast of 10% growth, and we currently expect total unit sales will be up by 15% in 2007. Increased affordability of handsets is aiding sales in developing markets such as China and India, while demand has also strengthened in established markets such as Europe and the U.S.”

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Scalise added that semiconductor content of many existing products is growing rapidly, notably in the automobile industry. “The semiconductor industry will continue to outpace overall economic growth with consumer demand leading the way,” Scalise concluded.