Sales of chips for cellular handsets will surpass sales of chips for PCs for the first tine in 2017 as the PC sales slump continues, according to market research firm IC Insights Inc.

Sales of ICs for handsets are projected to grow 16 percent this year to reach $84.4 billion, according to IC Insights. Meanwhile, sales of ICs for PCs - including desktop and notebook computers, tablets and ultra-thin Internet-centric client devices - are forecast to grow 9 percent to reach $80.1 billion, the firm predicts.

Booming memory chip prices will boost growth in both phones and PCs, IC Insights said. But handsets will become the largest application for ICs this year for the first time, according to the firm.

The average selling price (ASP) for DRAM chips is expected to increase by 53 percent this year, while NAND flash ASPs are projected to right by 28 percent.

Cellphone IC sales are also expected to get a boost this year from a projected 5 percent increase in shipments of smartphones, which are being packed with more low-power DRAM and nonvolatile flash storage, IC Insights said. Growth in PCs is expected to be held back by 3 percent declines in both standard personal computer and tablet unit volumes in 2017.