SAN JOSE -- The preamble of an expected 2002 semiconductor recovery appears to be on track with worldwide chip sales growing 1.6% to $10.60 billion in November from $10.44 billion in October, according to a new report released today by the Semiconductor Industry Association.

The SIA said the increase was the second month in a row that chip sales grew on a sequential basis.

"Our forecast released in November calls fourth-quarter sales to be 4.7% higher than the third quarter and with two months of data now in, we are on target to meet that projection," said George Scalise, president of the San Jose-based U.S. trade group. "Personal computers, wireless communications, consumer products and automotive continue to fuel semiconductor sales and lead the industry out of its year-long recession."

Europe registered the strongest sequential sales growth in November with a 5.3% gain over October, based on a three-month moving average, followed by the Asia Pacific region with a 2.5% increase. Chip sales in the Americas slipped 0.5% in November while Japan was down 1% from the prior month, the SIA said.

While November's sequential increase may be an encouraging sign for the chip industry, the month's sales total was 42% below revenues in the same month in 2000. The SIA report said November 2000 sales totaled $18.27 billion, based on a three-month moving average.

The SIA's most recent forecast calls for an industry turnaround to begin in the fourth quarter of 2001, followed by 6.3% growth in worldwide chip sales in 2002 from $141 billion in the previous year. Chip sales in 2001 were expected to fall 31.2% from 2000, making last year the worst recession ever in semiconductor history (see Nov. 7 story).

Today's SIA Global Sales Report shows chip sales in the Americas dropping 0.5% to $2.50 billion in November compared to $2.51 billion in October. Compared to a year ago, chip sales in the Americas were 55.4% below $5.60 billion in November 2000.

Asia Pacific chip sales registered a 2.5% sequential increase to $3.46 billion in November from $3.37 billion in October. The SIA report shows the region's chip sales 22.2% below $4.44 billion in November 2000.

Semiconductor sales in Japan slumped 1% to $2.32 billion in November vs. $2.35 billion in October. On a year-to-year basis, Japan's chip revenues were 47.5% below $4.43 billion in November 2000, said the SIA report.

Europe's chip sales grew 5.3% to $2.32 billion in November compared to $2.2 billion in October, based on the SIA's three-month moving average. Compared to the previous year, Europe's chip revenues were 39% lower than $3.80 billion in November 2000.