According to the Semiconductor Industry Association, global semiconductor sales in the first quarter of 2006 hit US$59.1 billion, down 1.3% sequentially, but up 7.3% year-on-year, mainly attributed to strong demand for semiconductors used in mobile phones. SIA indicated that demand for chips used in PCs and mobile phones rank first and second, respectively, and rising demand for chips used in handsets was stimulated by short product lifecycles and strong mobile phone subscriber growth in China.