NEW orders for computer chips rose for the first time in five months in May, a US trade group has said, offering hope that the ailing semiconductor industry may emerge from its doldrums.

New chip orders rose by half a per cent in May to $3.2 billion (£2 billion), the Semiconductor Industry Association (SIA) said. The key book to bill ratio rose in May to 0.84 from a revised 0.81 ratio in April. The ratio measures orders for computer chips against shipments, and means that chip makers received $84 in new orders for every $100 in chips they shipped in May.

Analysts had expected little improvement in May, with estimates ranging around 0.78 to 0.79. The April ratio was revised from 0.78, which had been a nine year low.

However, the industry is expected to show a drop this year.