The industry organization said in a statement it sees 2009 semiconductor sales falling 11.6 percent, to 219.7 billion from the prior year, an improvement upon its earlier June projection for a 21.3 percent decline.

Sales for 2010 will improve 10.2 percent, to $242.1 billion, followed in 2011 by a smaller growth spurt of 8.4 percent, to $262.3 billion, the association said in a statement.

SIA president George Scalise said demand for chips have improved and strengthened as the global economy began responding to fiscal actions by governments worldwide. With the U.S. economy recording strong growth in the third quarter, the outlook for the chip market has similarly improved, he said.

"The new forecast is brighter than our earlier projections, reflecting an improving global economy," Scalise said. "Unit sales of key demand drivers—including PCs and cell phones, which together account for about 60 percent of semiconductor demand—have been stronger than previously predicted. The current forecast is closely tied to projections of continuing improvement in the worldwide economy."