CALIFORNIA, US:  Global semiconductor sales fell about 29 per cent in January amid slumping demand for an array of products that use chips, ranging from personal computers and mobile phones to automotive products.

The Semiconductor Industry Association (SIA) said sales fell $15.3 billion in January from $21.5 billion a year ago.

Sales in January were down about 12 per cent from December 2008 levels.

"Worldwide semiconductor sales in January, historically a relatively weak month for the industry, reflected a continuing erosion of consumer confidence and the effects of the global economic recession," SIA President George Scalise said in a statement.

Inventory levels are very low and there are some signs that forward visibility is improving, Scalise added.

The recently-passed Economic Recovery Act and measures adopted in other countries have the potential to drive future demand for semiconductors, SIA said in the release.

The global economy continues to cast a pall over the semiconductor sector, which is struggling through one of its toughest periods as layoffs continue to rock the industry as consumers and businesses hold back on spending.