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 Monday, 30 December, 2002, 17:38 GMT
Semiconductor sales growth slows
An Intel plant
The semiconductor sector often reveals wider economic trends
Global semiconductor sales expanded just 1.3% in November over the previous month, heightening fears that a recovery in the tech sector is still a long way off.

In its monthly survey, the World Semiconductor Trade Statistics group said total sales in November were $12.7bn (�7.9bn).

Although the rise was less than October's month-on-month 1.8% increase, the gain over the previous year was a more impressive 19.6%.

But that still represents a slight slowdown from October, and experts noted that the comparison with 2001 was with the industry's worst year ever.

Doldrums

The problem for the chip sector is that the last three months of the year are normally among the strongest, as manufacturers count on a consumer spending spree over the holidays.

This year, the most chip-hungry sectors - computers and mobile phones - remain in the doldrums.

And early indications suggest that after a relatively good Thanksgiving, the November holiday during which US end-of year spending really kicks off, consumers have throttled back.

Sales actually fell in the US by 0.8% from October, with Japanese sales down almost as much.

"The WSTS numbers for November are historical data," one London-based investment bank analyst told Reuters.

"Key is what happened in December. We've seen weak retail reports this month, and just before Christmas (US chipmaker) Cypress warned about weak wireless chip sales."

The rest of the Asia-Pacific region managed a 1.3% expansion, and in Europe - where the use of chips in consumer electronics and cars outweighs computer use - sales were up 5.8%.

See also:

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