- Associated Press - Monday, August 30, 2010

SAN JOSE, CALIF. (AP) - Global sales of semiconductors grew 37 percent year-over-year in July to $25.2 billion as demand continued even as overall economic growth slowed, the Semiconductor Industry Association said Monday.

Sales climbed about 1 percent from June’s $24.9 billion. Year-to-date sales were up nearly 47 percent as of the end of July, at $169.2 billion.

Sales were strong “despite growing indications of slower growth in the overall economy,” said SIA President Brian Toohey in a statement.

The proliferation of chips into a broad range of products, he added, means the industry can continue to expand even as the overall economy slows.

SIA expects the chip industry to grow by 28 percent in 2010, despite recent warnings from major manufacturers that demand may be slowing down.

On Friday, for example, Intel Corp. lowered its revenue forecast for the third quarter citing weaker-than-expected demand for consumer PCs.

Intel, whose microprocessors are used in 80 percent of the world’s PCs, expects revenue of $10.8 billion to $11.2 billion July-September period. That is down from its earlier forecast of $11.2 billion to $12 billion in revenue.

Shares of Intel slid 22 cents to $18.15 in late morning trading Monday amid a broader market decline.