updated 8/2/2005 8:22:17 AM ET 2005-08-02T12:22:17

Worldwide sales of chips for computers, cell phones, consumer electronics and other applications rose 6.5 percent in the first six months of the year over the same period in 2004, the Semiconductor Industry Association said Monday.

Sales rose to $109 billion from the prior year's $102.4 billion.

The first three months of the year were stronger than the April to June period. Second-quarter sales dipped 2.1 percent from the first quarter.

Still, the SIA is betting sales will accelerate in the traditionally strong second half of the year, when consumers are expected to spend more on personal computers and consumer electronics during the back-to-school and holiday seasons.

"The strongest growth in 2004 occurred in the first half of the year," said SIA President George Scalise. "In contrast, we expect the strongest growth in 2005 to occur in the second half of the year."

An inventory glut hit the semiconductor industry last summer, slowing sales in the second half of 2004. The SIA is estimating total sales in 2005 will reach $226 billion, up 6 percent from 2004.

Intel Corp. and Texas Instruments Inc. have signaled the third quarter is shaping up to be strong. Intel, which is based in Santa Clara, Calif., is the world's top maker of chips for PCs. Texas Instruments, which is based in Dallas, is the world's biggest maker of chips for cell phones.

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