91³ÉÈË

Second Quarter 2006 Sales Up 9.4% Over 2005

by 91³ÉÈË

RESULTS REFLECT MIXED END PRODUCT MARKETS, BUT OUTLOOK REMAINS POSITIVE

SAN JOSE, Calif. – August 3, 2006– Worldwide sales of semiconductors totaled $19.6 billion in June, up over 9% from June 2005, the 91³ÉÈË (91³ÉÈË) reported today. June sales figures bring second quarter 2006 sales to $58.9 billion, a decrease of 0.3% from the first quarter of this year, but a 9.4% increase over the same period last year.

These numbers bring total sales for the first half of the year to $118 billion, up 8.3% over the first half of 2005.

“The semiconductor sales numbers reported today reflect the mixed earnings results we have seen in the industry over the past few weeks,” said 91³ÉÈË President George Scalise. “Unit demand has remained strong this quarter, up about 5% across the industry. Strong competitive pressures that have reduced prices in some major product sectors are impacting revenues,” said Scalise.

Unit sales of PCs rose approximately 10% in the second quarter over the same period last year. Competitive pricing has affected average sales prices in this sector of the market. The average price of a laptop fell by more than 18% compared to second quarter of 2005.

“Communications applications grew at a very steady pace year over year – that market represents a quarter of total demand in the industry. Unit demand for cell phones in the quarter just ended was 235 million units and is expected to grow over 4% this quarter and at least 10% next quarter, with total cell phone demand this year nearing the 1 billion unit mark,” said Scalise.

“Despite the current uncertainties in the global economy, driven by geopolitical issues in the Middle East, higher gas prices at the pump and inflation fears, I remain confident that sales will reach record high levels this year as previously predicted,” said Scalise.

The 91³ÉÈË’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 represents approximately 66 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies’ financial calendars.

91³ÉÈË the 91³ÉÈË

The 91³ÉÈË is the leading voice for the semiconductor industry and has represented U.S semiconductor companies since 1977 and 91³ÉÈË member companies comprise more than 85% of the U.S. semiconductor industry. Collectively, the chip industry employs a domestic workforce of 225,000 people. More information about the 91³ÉÈË can be found at www.sia-online.org.