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Consumers Drive November Chip Sales

Global sales rose 7%.

Semiconductor sales continued to show strength in November, rising 7% from the year before, as consumers filled their holiday shopping baskets with electronic gadgets.

Worldwide chip sales reached $20.4 billion in November 2005, compared with $19 billion the year before, according to the Semiconductor Industry Association's latest monthly sales report. Sales of flash memory chips, which are used in consumer electronic devices like MP3 players, digital cameras and cell phones, were up 33% from November 2004. Application specific circuits, another type of chip commonly found in consumer electronics, saw sales rise 34% year over year.

"The main story of 2005 is one of the growing importance of consumers in driving sales of semiconductors," said SIA President George Scalise in a statement accompanying the report. "The growing pervasiveness of microchips in everyday products and a strong underlying economy have combined to create a very favorable climate for the microelectronics industry."

The Asia Pacific region saw the biggest year-over-year gain, with chip sales rising 16.7%. In the Americas, chip sales grew 8%. By contrast, sales were down in Europe and Japan, declining 2% and 4.6%, respectively.

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