SAN FRANCISCO -- Despite a drop in chip stocks, an industry group says semiconductor sales are getting along swimmingly. Worldwide semiconductor sales in September increased 5% from August, to reach $22.6 billion, according to the Semiconductor Industry Association, with total sales to date in 2007 running slightly ahead of the group's expectations. With consumer electronics makers preparing for the holiday sales season, chipmakers enjoyed the traditional surge in demand during the third quarter. Global chip sales in the third quarter increased 13.2% from the second quarter. "The two largest demand drivers for semiconductors -- PCs and cell phones -- continue to show healthy growth," SIA president George Scalise said in a statement. For the second consecutive month, NAND flash was the star of the chip industry, with sales up 58.5% year over year, according to the SIA. And while volatile pricing has pressured the NAND market for much of the year, the SIA said that average selling prices of NAND in the third quarter increased 32% from the second quarter. Of course, this hasn't helped flash memory chip maker SanDisk ( SNDK), whose shares are down more than 16% in the past two weeks as the company has fallen victim to the selloff plaguing the broader chip sector . SanDisk was up 2.4% at $42.04 in midday trading Monday.