The industry group said it expects worldwide chip sales of $219.7 billion for 2009, a decline of 11.6 percent from 2008. In June, SIA had projected a decline of 21.3 percent for the year.

Sales are expected to grow by 10.2 percent next year, to $242.1 billion, and by 8.4 percent in 2011 to $262.3 billion.

The group was already expecting a rebound next year, but it was smaller - in June it had forecast growth of 6.5 percent in 2010 and said it expected sales to also grow 6.5 percent, to $221.9 billion, the following year.

Sales of personal computers and cell phones, which together account for about 60 percent of semiconductor demand, have been stronger than previously predicted, said George Scalise, president of the association.

"We remain cautiously optimistic for the longer term," he added. "The current forecast is closely tied to projections of continuing improvement in the worldwide economy."

A service of YellowBrix, Inc.