July Chip Sales up 7.6 Percent Year-on-Year

* Reuters is not responsible for the content in this press release.

Tue Sep 2, 2008 6:00am EDT

SIA Says Sales of Consumer Electronics, PCs and Cell Phones
                            Driving Demand
SAN JOSE, Calif.--(Business Wire)--
Worldwide sales of semiconductors grew by 7.6 percent to $22.2
billion in July from July 2007 sales of $20.6 billion. Sales grew by
2.8 percent from June when sales were $21.6 billion. Year-to-date
sales through July were $148.3 billion, an increase of 5 percent from
the same period of 2007 when sales were $141.3 billion.

   "Growing sales of consumer electronics, personal computers and
cell phones - which account for about 80 percent of chip demand -
contributed to a healthy 7.6 percent year-on-year increase in
worldwide microchip sales," said SIA President George Scalise. "LCD TV
units are projected to increase 32 percent this year, and digital set
top boxes and digital still cameras will both be up around 20 percent.
Taking into account PC unit growth of about 13 percent and cell phone
growth of over 10 percent, we are enjoying the benefits of the strong
3.3 percent second quarter GDP growth in the U.S, and continued
strength in world markets," Scalise continued.

   "For the second quarter of this year we've seen a significant
crossover - 300mm for the first time accounts for the largest share of
wafer manufacturing capacity and actual wafers processed, with 44
percent of total capacity and 47 percent of total silicon processed,"
Scalise noted. "Overall capacity utilization remains high at 89
percent - with leading edge above 95 percent," said Scalise.

   SIA reported that sales of DRAMs and NAND flash memory continued
to decline as a result of continuing price erosion. "Total
semiconductor sales excluding memory products increased by 11.6
percent year-on-year and by 3.2 percent sequentially," said Scalise.
"The memory content of typical PCs and cell phones continues to
increase. According to Micron Technology, the DRAM bit content of the
average PC in 2008 will increase by 56 percent, while the NAND flash
content for the average cell phone will grow by 178 percent," Scalise
concluded.

   About the SIA Global Sales Report

   The SIA Global Sales Report (GSR) is a three-month moving average
of sales activity. The GSR is tabulated by the World Semiconductor
Trade Statistics (WSTS) organization, an independent, non-profit
organization established by the global semiconductor industry to
compile industry statistics. The moving average is a mathematical
smoothing technique that mitigates variations due to companies'
financial calendars.

-0-
*T
July 2008
----------------------------------------------------------------------
Billions
----------------------------------------------------------------------
Month-to-Month Sales
----------------------------------------------------------------------
Market                               Last Month Current Month % Change
----------------------------------------------------------------------
Americas                                   3.40          3.35    -1.6%
----------------------------------------------------------------------
Europe                                     3.37          3.39     0.7%
----------------------------------------------------------------------
Japan                                      3.95          4.11     4.0%
----------------------------------------------------------------------
Asia Pacific                              10.85         11.33     4.5%
----------------------------------------------------------------------
Total                                     21.57         22.18     2.8%
----------------------------------------------------------------------

----------------------------------------------------------------------
Year-to-Year Sales
----------------------------------------------------------------------
Market                                Last Year Current Month % Change
----------------------------------------------------------------------
Americas                                   3.48          3.35    -3.8%
----------------------------------------------------------------------
Europe                                     3.28          3.39     3.3%
----------------------------------------------------------------------
Japan                                      3.96          4.11     3.6%
----------------------------------------------------------------------
Asia Pacific                               9.88         11.33    14.7%
----------------------------------------------------------------------
Total                                     20.60         22.18     7.6%
----------------------------------------------------------------------

----------------------------------------------------------------------
Three-Month-Moving Average Sales
----------------------------------------------------------------------
                                     Feb / Mar   May / Jun /
Market                                    / Apr           Jul % Change
----------------------------------------------------------------------
Americas                                   3.31          3.35     1.0%
----------------------------------------------------------------------
Europe                                     3.34          3.39     1.7%
----------------------------------------------------------------------
Japan                                      4.25          4.11    -3.3%
----------------------------------------------------------------------
Asia Pacific                               9.98         11.33    13.5%
----------------------------------------------------------------------
Total                                     20.88         22.18     6.2%
----------------------------------------------------------------------
*T

   About the SIA

   The SIA is the leading voice for the semiconductor industry and
has represented U.S. semiconductor companies since 1977. Collectively,
the chip industry employs a domestic workforce of 216,000 people. More
information about the SIA can be found at www.sia-online.org.

Semiconductor Industry Association
John Greenagel or Anne Craib, 408-436-6600
mailbox@sia-online.org

Copyright Business Wire 2008
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