Semiconductor Industry Association predicts growth of 7.7 per cent until 2010

Soaring gadget sales have sparked a rise in the demand for computer chips, according to an industry body.

The Semiconductor Industry Association (SIA) expects the sale of chips to rise by 7.7 per cent over the next few years, reaching $321bn in 2010.

"Consumer purchases continued to drive industry growth in 2007 despite rising energy costs and other concerns," said SIA president Gary Scalise.

"Unit sales of personal computers, cellphone handsets, MP3 players and digital televisions were very robust in 2007."

Chip sales were also boosted by emerging consumer markets in eastern Europe, Asia and South America, Scalise said.

The SIA predicts growth in all markets through to 2010, but Asia-Pacific will lead the way with a 48.4 per cent increase in 2007 rising to 51.1 per cent in 2010.

Worldwide semiconductor sales for 2007 increased by 3.8 per cent compared with last year to reach $257.1bn.