Chip Off the Old Block: Semiconductor Funds Humming After Banner Third Quarter

Semiconductor ETFs are up this week, after a glowing third-quarter sales number that shows chip technology is in demand in a wide variety of global markets -- especially so in the U.S. and China.

Here's the skinny. According to the Semiconductor Industry Association, third-quarter global semiconductor sales skyrocketed 11.5% from the second quarter -- a boost the SIA cites as "the highest quarterly sales total in history."

"The global semiconductor market has rebounded markedly in recent months, with September showing the clearest evidence yet of resurgent sales," offers John Neuffer, president and CEO of the Semiconductor Industry Association. "The industry posted its highest-ever quarterly sales total, with most regional markets and semiconductor product categories contributing to the gains. Indications are positive for increased sales in the coming months, but it remains to be seen whether the global market will surpass annual sales from last year."

Overall, worldwide semiconductor sales stood at $88.3 billion in the third quarter, with a particularly strong month of September, where sales were up 4.2% over August figures. Regionally, China saw the highest jump in semiconductor sales, at 5.4% for the quarter, and rose by 12.0% on a year-to-year basis. North American markets may be growing faster, though, as sales on the continent grew 4.2% in Q3, but actually were down 2.4% since the third quarter of 2015. That suggests a real burst of growth in the last half of 2016, the SIA reports, even though China has shown the most demand over the long haul.

If you liked this article you might like

The Tech Sector Outperforms With Semiconductors Leading the Way

5 ETFs to Buy If You Love Nvidia's First-Quarter Results

5 ETFs to Buy If You Love Intel's First-Quarter Earnings