Just days after Microsoft and EMC demonstrated strength in software and storage comes Monday’s news that semiconductor sales increased sharply in September. Global microchip sales in September were $22.6 billion, an increase of 5.9 percent from September 2006 when sales were $21.3 billion, according to the Semiconductor Industry Association. Sales were up 5.0 percent from August 2007 when sales were $21.5 billio Just days after Microsoft and EMC demonstrated strength in software and storage comes Monday’s news that semiconductor sales increased sharply in September. Global microchip sales in September were $22.6 billion, an increase of 5.9 percent from September 2006 when sales were $21.3 billion, according to the Semiconductor Industry Association. Sales were up 5.0 percent from August 2007 when sales were $21.5 billion.Put these events together, and it’s clear that there is still strong demand and fundamental strength in tech. Key drivers for the chip sector include the expected ramp for the holiday season, plus strong demand for PCs and cellphones, the SIA said. According to the Gartner Group, worldwide unit sales of PCs increased by 14.4 percent over the immediate-prior quarter. Gartner currently expects that PC sales will increase by 13 percent year-on-year. Microprocessor revenues increased by 18.7 percent compared to the prior quarter. Those findings track with Microsoft’s report last week; the company did better than its own forecast, as strong sales of PCs led to stronger than expected growth in sales of Vista and Office.Strong sales of cell phones and various consumer gadgets boosted NAND flash sales by 58.5% year over year and 46.2% over the previous month. Interestingly, ASPs (average selling prices) for NAND flash increased by nearly 32%, the SIA said. Chips stocks are far from out of the woods, of course, and there are still concerns that the industry is moving cyclically into a supply glut. The SOXX, or more formally, The Philadelphia Stock Exchange Semiconductor Sector Index, comprised of 19 semiconductor stocks, is down nearly 10% since the start of October. Overall, though, there’s been a burst of seriously good news since late last week. And on Wednesday the market will be watching the Federal Reserve to see if it lowers key, short-term interest rates for the second consecutive meeting. Wall Street is expecting a cut of 25 basis points (one-quarter of one percent). If Chairman Ben Bernanke comes through, by no means a certainty, the market will react positively, although I wouldn’t expect a massive rally since the cut is already priced in to a certain extent. I welcome your comments, tips and suggestions. Reach me at bill.snyder@sbcglobal.net Technology Industry