Chips showed stronger sales in August

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Figures from the WSTS for chip sales in August showed that while they were down 12.9 percent year on year, figures are better than expected.

PC memory chips rose while sales of memory chips for handsets and consumer electronics weren't as good as expected. Wired communications and general microprocessors showed some strength.

According to Bruce Diesen, an analyst at Carnegie Securities Research, sales to China were better in August than expected. He said: "We still expect a 14 percent drop in world semiconductor dollars this year and a 12 percent increase next year."  Memory and car chips are expected to be strong in September, he added.

While volumes of X86 microprocessors were good in August, the mix wasn't as strong as in June and July, said Diesen. The rise in sales of PC memory chips were helped by stronger prices, partly due to supply constraints.While prices have risen sharply for DRAM, they still haven't reached $2 a chip.

South Korean exports are expected to soar in September, aided by demand from Apple for its iPhone.