2010 chip revenues forecast

According to industry watcher iSuppli -- Global chip sales could rise by more than 20 percent this year, bringing them back above pre-recession levels. Global chip revenues in 2010 are projected to grow 21.5 percent over 2009(a weak year), to a level 2.3 percent above 2007(year indicating pre-recession levels) sales.

With Intel Corp, Advanced Micro Devices Inc (AMD), Nvidia Corp, Samsung Electronics Co Ltd, Altera Corp, and others expected to make a combined revenue of $279.7 billion in 2010, iSuppli expects both dramatic growth for the companies and the depth to which the economic downturn hit them over the last three years.

According to Dale Ford, iSuppli's senior vice president of market intelligence services --there’s great enthusiasm over the semiconductor industry's 2010 outlook, making 2010 likely to be a year when semiconductor industry growth on a sequential quarterly basis returns to a more normal pattern.

Other observations of iSuppli:

--Despite recent growth in demand, meeting the demand will be tough, as supply bottlenecks indicate the industry does not have enough equipment-producing chips, a problem that is not reflected in the manufacturers' capital spending plans.

-- Planned spending by chipmakers for 2010 is at levels less than half of what it was in pre-recession years(2007 and earlier),. That apart, the planned spending is focused more on advanced manufacturing processes than on growing production capacity. --------

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