Developing economies in China, India, Europe and Latin America fueled a 5.4 per cent rise in global chip sales in the first half of 2008, helping to overcome stagnant demand in the weak US economy, according to figures released Monday by the Semiconductor Industry Association.

The developing economies will account for more than half of global PC sales this year, the trade group said.

Sales in the first six months of 2008 were 127.5 billion dollars, with second quarter sales of 64.7 billion dollars, representing an increase of 8 per cent from the year ago period. Increased energy costs have done little to dampen demand, the industry group said.

Personal computers accounted for about 40 per cent of chips sold with cell phones accounting for 20 per cent.

"Emerging markets are a major factor in driving worldwide semiconductor sales," said SIA President George Scalise in a statement.

"In 2008, developing countries - with sales of over 153 million units - will account for half of worldwide PC sales. The emergence of large middle-class populations in China, India, Eastern Europe, and Latin America has more than offset the effects of slower growth in the US economy," he added.