August chip sales fell 42 per cent on last year's figures, and continue to slide, according to the Semiconductor Industry Association (SIA).
Global sales fell to £7.1bn ($10.5bn), more than three per cent down on July (six per cent in Europe). However, the fall off is slowing, as sales fell six per cent from June to July, and the SIA hopes that September will be the last month where sales drop.
SIA president George Scalise said: "The reduced sales level continues to reflect the slow economic activity in the world's major economies, combined with excess inventories in the information technology market.
"We believe that the inventory correction will be largely completed by the end of September. The tragic events of 11 September may slightly dampen sales ... however, we are still confident that we will see sequential quarterly growth commencing in the December quarter."
Analysts have estimated that total 2001 sales may fall by as much as 35 per cent on last year's figures. Following the SIA August figures, they said that they also expected the market to bottom out soon, but that growth would be slow.
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