1.8% Increase in Chip Sales Posted

Worldwide sales of semiconductors rose 1.8% in October from the previous month, indicating demand is recovering, an industry study said.

Sales rose to $12.5 billion in October from $12.3 billion a month earlier, boosted by demand for chips used in mobile phones, the Semiconductor Industry Assn. said.

Chip sales posted their steepest decline last year, and the trade group lowered its 2002 sales forecast this month.

Sales rose 20% in October from a year earlier.

“One month does not make a trend,� warned Jake Dollarhide, who helps manage about $100 million at Fredric E. Russell Investment Management. Fredric E. Russell sold its Intel Corp. stake last year, he said.

Intel shares have risen 61% since trading at a 52-week low of $12.95 on Oct. 9. The Philadelphia semiconductor index has gained 75% since Oct. 9.