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World-wide semiconductor sales in July fell 0.03 percent from a year earlier to $18.01 billion, as strong competition led to declining prices, the Semiconductor Industry Association said on Thursday. Sales rose 0.3 percent from June 2005, according to the group.
"Although unit sales of personal computers and cell phones are running well ahead of earlier projections, a very competitive market has resulted in substantial price attrition," SIA President George Scalise said in a statement.
Semiconductor Holders Trust, an exchange-traded fund, was off slightly in premarket trade on Inet. The fund, which tracks the performance of chip stocks, fell 8 cents, or less than 1 percent, to $36.90.
Scalise said there were concerns that electronic consumer products sales could take a hit if energy costs continue to rise.

Copyright Reuters, 2005

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