A dip in consumer demand has meant a build up in chip inventories

The announcement may ease concerns that earnings growth in the technology industry has stalled and help stop a slide in European and US share prices.

TI shares jumped more than 5% in New York during extended trading on Monday.

TI said that net profit in the three months to 31 March was $411m (�216m) from $367m a year earlier. Sales rose to $2.97bn compared with $2.99bn.

Bright spot?

Those figures topped analysts expectations and come after tech industry bellwether IBM, and firms such as Samsung and Philips had disappointed investors.

Also helping buoy sentiment was TI's forecast that profit and sales would continue to climb in the current quarter.

The company said that stronger demand for educational and sensor products had helped offset a difficult semiconductor market.

Despite the fact that growth is likely to slow this year, TI was upbeat about the prospects for its wireless business - it is the world's largest maker of chips used in mobile phones.