The Semiconductor Industry Association says that despite severe competition in the sector in the early part of the year, worldwide chip sales were on track with its forecast of 1.8 percent growth in 2007.

This was due to an increase in sales of 2.2 percent to $20.6 billion in July which were boosted by a rising demand for consumer electronics.

The main demand for semiconductors was the PC and mobile phone market, although some other consumer electronic products also appear to be growing.

Microprocessors, MOS logic devices, and NAND flash memory products rose 3.2 percent from the previous month. Microprocessor unit sales increased nearly five percent from June. Prices increased by three percent across the board.