The European Semiconductor Industry Association (ESIA), which is part of the European Electronic Component manufacturers' Association (EECA), has stated that according to the latest figures European semiconductor chip sales were stronger than expected in August. Chip sales in Europe showed a positive development during the month, which is seen as a combined consequence of a weaker than average July and positive developments in some end use markets, notably handsets and PCs.

As expected, demand for flash memory has increased worldwide, and registers a good 2 percent growth for Europe. Microprocessors and specific applications have reversed the negative trend registered in the past months and with regards to the latter segment, the good performance of logic-specific chips (+3.3 percent) is highlighted, driven by the communication and computer sectors.

According to the World Semiconductor Trade Statistics (WSTS), European semiconductor sales in August 2005 amounted to $3.078 B, up 1 percent versus the previous month. This corresponds to a decline of 4.3 percent compared to the same month last year but on a year-to-date basis, semiconductor sales still increased by 1.4 percent when compared to the same period in 2004.

The exchange rate of the Euro compared to the US dollar still has an impact on the growth data at this time but with declining effect. Measured in Euros, semiconductor sales in August were €2.525 B, up 1.9 percent on the previous month and a decline of 4.4 percent versus the same month a year ago. On a year-to-date basis, semiconductor sales show a decline of 2.1 percent compared to the same period in 2004.

On a worldwide basis, semiconductor sales in August were $18.584 B, up strongly 3.2 percent versus the previous month. This sees an increase of 1.7 percent when compared to the same month in 2004 and on a year-to-date basis it results in an unchanged growth rate of +5.8 percent.