Semiconductor Stocks Up on Report

A handful of semiconductor stocks are advancing in midday trading Monday after the release of a positive industry report reflecting improved year-on-year February sales for the industry.
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NEW YORK (TheStreet) -- A handful of semiconductor stocks have advanced in midday trading Monday after a positive industry report reflecting improved year-on-year February sales for the industry was released. A worker prepares a silicon wafer machine in a clean room at the Texas Instruments semiconductor fabrication plant in Dallas, Texas, U.S., on Tuesday, June 16, 2009. Texas Instruments Inc., the second-largest U.S. semiconductor maker, reported sales and profit that beat analysts' estimates on stronger demand for chips used in mobile phones and communications networks in China.

Actel

(ACTL)

has risen 3.4% to $14.20, while

Altera

(ALTR) - Get Report

has added 2.7% to $25.

Intersil

(ISIL)

has gained 3.4% to $15.30, while

Marvell

(MRVL) - Get Report

is up 2.9% to $21.

Meanwhile,

Texas Instruments

(TXN) - Get Report

has jumped 2.8% to $25.30 and

Xilinx

(XLNX) - Get Report

has added 2.4% to $26.30.

The Semiconductor Industry Association (SIA) on Monday reported that worldwide semiconductor sales in February were $22 billion, a decrease of 1.3% from January, when sales were $22.3 billion, but a significant increase of 56.2% from February 2009, when sales were $14.1 billion.

"The February sales numbers reflect continued recovery of sales of semiconductors, with demand principally driven by growth in sales of electronic products in emerging economies," SIA President George Scalise said in a statement.

Scalise said that unit sales of the two main demand drivers for semiconductors -- personal computers and mobile phones -- are now projected to grow in the low- to mid-teens in 2010. He added that while the 56% year-on-year growth reflected in the February sales figure is encouraging, it's "important to note that January and February of 2009 marked the low point for the semiconductor industry during the worldwide economic downturn."

SIA remains cautiously optimistic that there is upside potential for growth beyond its previous forecast of 10.2% sales growth to $242.1 billion in 2010.

-- Reported by Andrea Tse in New York

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