The chip industry rebounded in May with worldwide semiconductors sales rising 2.4 percent from a year ago to hit $20.3 billion, according to a report by the Semiconductor Industry Association (SIA).

The sales rose after a sequential drop in April, the group said Monday.

Sales of microprocessors and NAND flash memory saw the largest sales increases, indicating continued strength in end markets for personal computers and cell phones, according to the report.

Memory used in computers and other consumer electronic devices saw unit shipments increase by 7 percent, the firm found. However average selling prices continued to be under competitive pressure. Prices declined 14 percent sequentially.

Overall, the SIA's report indicated that, even with its troubles, the industry is recovering with slow, but steady growth.

Despite severe price pressures on DRAMs and NAND flash, total sales of semiconductors for the first five months of 2007 increased by 3.1 percent from the same period of 2006, said SIA president Georg Scalise in a statement.