Semiconductor unit shipments are now growing on a month-to-month basis, but pricing pressures appear to be keeping the chip recovery at bay, according to the SIA. However, the trade group said it believes revenue growth will soon resume now that chip inventories are coming into balance with system shipments.

In September, the Asia Pacific region remained the world's largest semiconductor market at $3.25 billion, compared to $2.44 billion for the Americas, which continues to be hit the hardest by the current downturn.

Compared to a year ago, worldwide semiconductor revenues in September were down 44.6% from $18.44 billion in September 2000, said the San Jose-based U.S. trade group.

In issuing the monthly sales report, the SIA noted that the 2.5% month-to-month decline in September was less than the 3.5% drop in August, when chip revenues fell to $10.48 billion from $10.86 billion in July. September's drop was also the third consecutive month that showed an easing in the rate of decline since the semiconductor downturn began last year, the SIA said.

"A broad cross-section of products grew on a unit basis during the September quarter," said George Scalise, president of the SIA in San Jose. "We expect this trend to continue in the December quarter, and with inventories coming into balance, we believe this will lead to sequential quarterly growth in sales."

"Information technology products such as personal computers and wireless applications, combined with digital audio devices and other consumer products, will be the demand drivers that lead the industry into recovery," Scalise added.

Only the Asia Pacific region showed a month-to-month increase in sales during September with chip revenues growing 2.6% to $3.25 billion in September compared to $3.17 billion in August, said the SIA, which uses a three-month moving average for sales totals. Compared to a year ago, Asia Pacific sales were down 30.9% from $4.70 billion.

In the Americas, semiconductor revenues dropped 6.4% to $2.44 billion in September from $2.61 billion in August, said the SIA report. Chip sales in the Americas fell 58.6% from $5.90 billion in September 2000, the report said.

Chip sales in Japan fell 6.3% to $2.41 billion in September from $2.58 billion in August. On a year-to-year basis, Japan's sales were down 42.7% from $4.21 billion, the report said.

In Europe, chip sales were 0.7% lower in September to $2.1 billion vs. $2.13 billion in August and 41.3% below $3.62 billion in the same month last year, according to the SIA.