SAN JOSE – Global microchip sales in September were $22.6 billion, an increase of 5.9% year-over-year, the Semiconductor Industry Association reports. Sales were up 5% sequentially.

Third-quarter sales of $67.8 billion increased 5.9% from the same period last year, and sales were 13.2% higher than the previous quarter.

Year-to-date, sales were $188.8 billion, 3.5% ahead of the first nine months of 2006.

“The increase in worldwide sales of 13.2% from the prior quarter reflects historic patterns as the holiday season build began,” said SIA president George Scalise. “Demand from the consumer products sector was very robust, as sales of semiconductors for traditional consumer applications rose by 35% quarter-to-quarter. The two largest demand drivers for semiconductors – PCs and cellphones – continued to show healthy growth. According to the Gartner Group, worldwide unit sales of PCs increased by 14.4% over the immediate prior quarter. Gartner currently expects that PC sales will increase by 13% year-on-year. Microprocessor revenues increased by 18.7% compared to the prior quarter.

The quarterly reports from the four largest cellphone vendors indicate that unit sales in the third quarter grew by approximately 11% from the prior quarter. Strong sales of cellphones and personal electronics products were a major contributor to sharp increases in revenue for NAND flash,” said Scalise. “Sales of NAND flash were up by 46.2% from the prior quarter and by 58.5% in September 2007 compared to September 2006. ASPs for NAND flash increased by nearly 32% from the second quarter.”

“Worldwide sales of semiconductors for the first nine months of 2007 are running slightly ahead of the SIA June forecast. At this point, concern over rising energy costs has not been an issue. This will bear watching, however, as we move into the retail selling season,” Scalise concluded.