VentureBeat

Worldwide chip sales were up 19.7 percent in the third quarter to $61.9 billion, compared to the second quarter. The increase shows that tech industry recovery is continuing, since chips are used in everything electronic.

Sales compared to the third quarter of 2008 were down 10.1 percent from $68.9 billion a year ago, according to the Semiconductor Industry Association. The chip industry hasn’t been able to beat year ago figures all year, but each month has been an improvement as the industry climbs out of the recession. In September, sales were $20.1 billion, up 8.2 percent from $19.1 billion in August.

The overall numbers jibe with Intel’s recovery, which was boosted in the third quarter as manufacturers built up supplies of computers for the fall selling season. It remains to be seen if chip makers and their customers can sell everything they made, considering that consumer confidence remains weak.

The third quarter sales were above expectations, and September sales matched historical patterns, said George Scalise, president of the SIA. PC and cell phone sales are running ahead of earlier forecasts, while chips for industrial applications showed signs of recovery. Sales in all regions rose. Scalise said the chip industry is running ahead of worst-case scenarios projected earlier in the year and that overall sales will likely be better than the group’s mid-year forecast of a 21 percent decline in sales for 2009.

All monthly sales numbers represent a three-month moving average of global semiconductor sales.

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