WORLDWIDE SEMICONDUCTOR SALES REACH NEW INDUSTRY HIGH FOR 2000.

Driven by Internet and Wireless Technologies, Sales for August 2000 Reflect a 52% Increase Over August 1999.

Worldwide sales of semiconductors once again reached an industry high of $18.19 billion for August 2000, an increase from $11.91 billion in August 1999, which represents a 52.7% year-over-year growth in chip sales, the Semiconductor Industry Association (SIA) reported today.

The increase in semiconductor sales was apparent in all geographical regions with the wired, wireless and Internet infrastructure markets experiencing the largest growth in demand. The Asia Pacific and Japan markets grew 60.2% and 53.7%, respectively from last year. The Americas market was up 50.3% from last year, and Europe's sales grew 46.4%.

From its beginning in the 1950's, the semiconductor industry has been characterized by a four year cycle which has been sporadically modified by unexpected economic factors. The semiconductor industry has been led by a 17% compound annual growth rate (CAGR) for the past forty years.

The SIA's Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics )WSTS) organization, which represent some 70 companies. The three-month moving average is a mathematical smoothing technique that takes out variations due to company's monthly financial calendars.

The SIA is the leading voice for the semiconductor industry and has represented U.S.-based manufacturers since 1977. SIA member companies comprise more than 90 percent of US-based semiconductor production. Collectively, the chip industry employs a domestic workforce of 284,000 people.