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WEET: September Chip Sales Remained Strong at $21.4 Billion

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Global chip sales rose to $21.4 billion, an increase of 9.3 percent from September 2005, and a 4.2 increase from the $20.5 billion reported in August 2006. Strong demand for consumer products, including cell phones, MP3 players, and personal computers were major drivers of increased chip sales.

Global semiconductor sales in the third quarter of 2006 were $64.1 billion compared to $59.3 billion in the second quarter of this year, an increase of 8 percent. For the first nine months of 2006, sales totaled $182.6 billion - an increase of 8.9 percent from the $167.6 billion reported for the first nine months of 2005.

PC manufacturers are now producing systems designed for the new Windows Vista operating system, which is contributing to strong demand for DRAMs. DRAM sales increased by 10 percent sequentially and 40 percent from September 2005, reflecting growth in bit demand and tightening supply. Microprocessor sales increased by 4 percent from August of this year, while declining by 11 percent from August 2005. The year-on-year decline in microprocessor sales can be attributed to price competition as unit sales rose.

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