More gloom for the semiconductor market as NXP Semiconductors warns of a sharp decline in sales in the fourth quarter.

Based on market sentiment, recent order book development and expected future trading levels, the company said it expected a 15% to 25% sequential sales decline in the fourth quarter on a business and currency comparable basis.

This compares to the previous guidance of an 8 to 14% sequential sales decline as announced on 21 October 2008.

The chip maker said it was changing its sales expectations for the fourth quarter of 2008 "in light of weakening macroeconomic conditions and a deteriorating sales environment".

This news from NXP comes on the heels of general chip market figures from the SIA which forecast a 5.9% decline in Q4.

"Visibility of sales remains very limited," warned NXP.