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The recovery in semiconductor sales continued to build momentum in September, according to the latest data from the Semiconductor Industry Association (SIA). September IC sales reached US$20.1 billion, an increase of 8.2% from the previous month, which was US$19.1 billion.

Third quarter sales totaled US$61.9 billion, an increase of 19.7%, compared to the prior quarter when sales were US$51.7 billion.

“Global semiconductor sales in the third quarter were above expectations,” said SIA President George Scalise.  “September sales were in line with historical patterns, reflecting increased demand from end-users as they began the build for the holiday season. Unit sales of personal computers and cell phones – the two largest demand drivers for semiconductors – continue to run ahead of earlier forecasts. Meanwhile, demand for semiconductors for industrial applications – a sector that had declined sharply -- showed initial signs of recovery. Sales increased in all geographic regions.”

On a regional basis, all regions saw strong month-on-month growth. All regions except Americas (6.2%) saw growth of over 8%. The biggest three-month moving average gains came from Japan with an increase in sales of 21.5%.

However, both Europe (-24.8%) and Japan (-14.9) continue to show the weakest sales on a year-on-year comparison.

“Amid signs that we are in the early stages of recovery in the global economy, semiconductor sales continue to reflect normal seasonal patterns.  Sales are running well ahead of the worst-case scenarios projected early in the year, and we are optimistic that total sales for 2009 will be better than our mid-year forecast,” Scalise concluded.

The SIA’s mid-year forecast noted worldwide sales were expected to reach US$195.6 billion for 2009, a decline of 21.3% from sales of US$248.6 billion in 2008.