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2010 Chip Forecast Slashed on Higher Inventory

With consumer demand slowing and inventories rising, the market research firm iSuppli Corp. is trimming its 2010 semiconductor revenue forecast to 32 percent, down from its previous outlook of 35.1 percent.

Global semiconductor sales now are expected to amount to $302 billion in 2010, up from $228 billion in 2009. Despite the reduced outlook, 2010 still will be a year of impressive growth and record-setting revenue for the semiconductor industry. Revenue in 2010 will rise by about $74 billion compared to 2009 and be almost $28 billion higher than 2007, the previous last peak year for semiconductor revenue, according to iSuppli’s semiconductor industry analysis.

iSuppli now expects that revenue in the fourth quarter will decline by 0.3 percent compared to the third quarter, the first sequential decrease since the market collapse in the fourth quarter of 2008 and first quarter of 2009.

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2 comments on “2010 Chip Forecast Slashed on Higher Inventory

  1. bolaji ojo
    October 1, 2010

    2010 is already history for many companies. What will 2011 look like? Will the market rebound or will we see demand dropping as companies back away from some of the inventory-loading that helped fuel the sharp 2010 sales increase? I'll like to see what iSuppli expects for 2011 even if it might be a bit too early to wrap up 2010.

  2. papri1
    October 12, 2010

    2010 technology is for the people in category belonging to upper class. The talented people might comprise also from lower salary class but their contributions are really ignored in respect to the external requirements and the view of the respective personnel. Technology will proceed more further but capacity and capability enthusiasm might decrease due to economic backwardness.Possibility to overcome is to sale of the developed products and incorporating modes for further innovations beyond our thoughts.

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