Average CPU prices down 18 per cent

THE SEMICONDUCTOR Industry Association (SIA) said chip sales were worth $20.5 billion in August, up 10.5 per cent from the same month last year.

The increased sales growth was led by DRAMs, up 31.4 per cent from August 2005, which the SIA said is in an indication PC sales remained strong.

But sales of CPUs declined by 6.8 per cent in August from the year before. The SIA explained this by saying "strong competition" meant a year on year 18 per cent drop in average selling prices.

Stock levels at semiconductor makers and in the channel have risen but the SIA said it's nothing to panic about. µ