Oct. 16--The nation's technology sector is kicking into gear as businesses and consumers boost their spending on computers and electronics.

Shipments of semiconductors are on the rise. Some companies are hiring. Tech stocks outperformed the market all summer. And U.S. exports to China, including technology products, have climbed 33% since January.

That's good news for California, home to hundreds of companies that make the software, chips and switches that power many of today's bestselling computer and electronics devices.

On Tuesday, Santa Clara-based chip maker Intel reported better-than-expected sales and profit for the third quarter, a sign that demand for its products is picking up. Its stock jumped as much as 5% in after-hours trading. And San Jose networking giant Cisco Systems Inc. said Tuesday that it would pay $2.9 billion for a Massachusetts firm that makes equipment for the wireless industry. That's Cisco's second multibillion-dollar acquisition in recent weeks.

Though a full-blown rebound may be months away, things are looking up for tech companies throughout the state and nation. The tech-heavy Nasdaq index is up 35.7% so far this year.

"We're digging ourselves out of the hole and seeing the beginning of a recovery," said Tim Curran, chief executive of the Global Technology Distribution Council, a trade association that represents tech distributors.

China, which is recovering faster than the U.S. in part because of a massive government stimulus package, is a big part of the turnaround. U.S. exports to China in August were 21% higher than they were in the same month during the boom year of 2006, helped in large part by China's voracious appetite for technology.

With an estimated 680 million cellphone users, China is already the world's largest mobile market. It has more Internet users -- 380 million -- than the U.S. has people.

"Businesses and telecom companies in China are trying to build up their infrastructure to keep up with the growing demand for their services," said Stephen Minton, an analyst with IDC.

Apple Inc. is one of a slew of companies looking to hit it big in the Middle Kingdom; it's rolling out the iPhone there this month.

Still, the firm's products have continued to do well with U.S. consumers despite the deep recession. For the three months ended July 31, Cupertino-based Apple posted a $1.23-billion profit, marking its best-ever non-holiday quarter. Apple stock reached a 52-week high of $191.51 on Monday before closing at $190.02 on Tuesday.