Report: Global chip sales plunge nearly 29% in Jan.

Special Report:Global Financial Crisis

SAN FRANCISCO, March 2 (Chinese media) -- Worldwide sales of semiconductors dived

28.6 percent in January from the same period of last year as a result of the

world economic downturn, a leading U.S. trade group said on Monday.

Global semiconductor sales dropped to 15.3 billion U.S. dollars in the

first month this year, compared with 21.5 billion dollars in the same period

last year, according to a report released by the Semiconductor Industry

Association (SIA), which is based in San Jose, California.

Sales in January this year were also down 11.9 percent from December 2008's

17.4 billion dollars.

"Worldwide semiconductor sales in January, historically a relatively weak

month for the industry, reflected a continuing erosion of consumer confidence

and the effects of the global economic recession," George Scalise, SIA

president, said in a statement.

"Sales declined across the entire range of semiconductor products, as sales

of important demand drivers such as personal computers, cell phones, automobiles

and consumer items remained under pressure," he said.

Inventory levels are very low, Scalise said, noting that "there are some

signs that forward visibility is improving."

While releasing these dismal figures, SIA, whose member companies account

for nearly 90 percent of semiconductor production in the United States, pinned

its hopes on the economic stimulus package recently signed into law by U.S.

President Barack Obama.

The package and measures adopted in other countries "have the potential to

drive future demand for semiconductors while addressing important issues such as

energy, health care, and infrastructure improvements," the SIA said.