Chip Sales Fall 42% in August to $10.5 Billion

Worldwide sales of semiconductors fell 42% in August as demand for chips used in products ranging from computers to mobile phones declined, an industry group said.

August sales dropped to $10.5 billion from $18.1 billion in the same month last year, the Semiconductor Industry Assn. said. September sales also may have declined, it said.

Spending on computers and other devices may have fallen last month as consumers became more concerned about the economy after the terrorist attacks. Chip makers from Intel Corp. to LSI Logic Corp. already have fired thousands of workers.

ABN Amro Holding cut its global semiconductor sales growth forecast for 2002 to 9% from 15%. Sales this year will probably drop 31%, more than the 29% previously estimated, the No. 1 Dutch bank said in a note e-mailed to investors.

August sales were 3.4% lower than July sales of $10.9 billion.

In Europe, sales in August were 40% lower than the same month last year. They fell 55% in the Americas and 32% in the Asia-Pacific region. In Japan, sales declined 36%, the SIA said.