DRAM and flash memory is selling very well, but PC processor sales stumbled in May.
The Semiconductor Industry Association (SIA) announced on Monday that chip sales in May 2006 totalled US$19.7bn, compared to US$18.1bn in May 2005. This was also an 0.7 percent increase on the previous month.
Sales of DRAM chips were up 13.7 percent compared to May 2005, which the SIA said was caused by strong sales of personal computers. However, sales of PC microprocessors dropped two percent, which was blamed on computer manufacturers running down their inventory stocks.
With sales of NOR flash memory also buoyant, thanks to the popularity of digital cameras and music players, the SIA believes the chip market can look forward to a bright future.
"We expect to see global semiconductor sales running 9 to 10 percent ahead of last year's pace for the next several months. End-market demand, inventory levels and capacity utilisation all indicate generally favourable conditions for the industry," said SIA president George Scalise in a statement.
ZDNet UK's Graeme Wearden reported from London. For more coverage from ZDNet UK, click here.
