World chip sales were $11.7bn in July, according to the World Semiconductor Trade Statistics organisation. This represents an 8% improvement on July 2001, the first year-on-year increase since February 2001. However, the increase is based on a 37.4% year-on-year increase in the Asia-Pacific region, with sales in July 2002 at $4.26bn. This hides declines in the other regions - 4.3% down in Europe, 3.4% down in the Americas and 4.0% down in Japan. European sales were $2.16bn in July 2002.

George Scalise, president of the US Semiconductor Industry Association
(SIA), comments: "Growth continues to be most robust in the digital consumer
market, including DVDs, video games and digital cameras, as reflected in
increased demand for standard cells, consumer ASP's, optoelectronics and
flash memory chips in the month."

Gartner Dataquest reports a 0.8% increase in mobile phone unit shipments in
Q2, compared with last year. Worldwide sales came to 98.7m units. Nokia
increase its market share from 34.2% in Q2 2001 to 35.6%. Motorola was No.2
with 15.7%. The remaining companies in the top five were Samsung (9.5%),
Siemens (8.4%) and SonyEricsson (5.4%).

Peripheral Research is expecting the micro-electro-mechanical systems (MEMS)
market to triple in the period 2000-2005 from 2000's $3.8bn to more than
$11bn by 2005. Emerging applications include optical network switches, image
sensors, accelerometers, drive by wire and brake by wire auto, biochips/DNA
analysis, digital TV, game controllers and data storage. Sensors will be
increasingly replaced by actuator applications. MEMS sensor costs are
expected to fall from $10 to $1 per unit on average.

InStat/MDR believes wireless MEMS applications will experience 37.2%
compound annual growth rates (CAGR) between 2001 and 2006. These will take
the form of RF MEMS and wireless MEMS sensors. The users of the technology
will be in the cell phone, automobile and industrial processing/condition
monitoring markets. A possible hurdle to growth is proof of volume
manufacturability.
Sales of RF MEMS (switches/relays, filters, inductors, . . .) are forecast
to reach $200mn by 2006, down considerably on previous forecasts - a result
of better pricing and volume guidance from companies. Wireless MEMS sensors
have a $700mn forecast in 2006, but government decisions could eliminate the
sector beyond 2006.

Analysts are expecting bad news at Intel's mid quarter update tomorrow
(Thursday, September 4, 2002), according to the Financial Times.