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Korean chip vendors look to World Cup for boost

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ComputerWire: IT Industry Intelligence

South Korean semiconductor vendors are pinning their hopes for a business rebound on a purported "World Cup Cycle" in the chip market.

The country is one of the co-hosts of the Soccer World Cup this month, along with its neighbor Japan. The tournament will no doubt give a boost to the country's economy, and provide some distraction for chip vendors who have seen sales and prices crash over the last two years.

However, according to the Korean Times, vendors are banking on a rebound of business in the wake of the tournament. Their hopes are based on the fact that the last two chip recessions have occurred in the year before Soccer World Cups, which are held every four years, and that each tournament has coincided with a renewed bout of growth.

Most analysts seem agreed that the chip industry can look forward to some kind of rebound in the second half of this year, so a post World Cup boost in chip sales will probably materialize once again. Whether there is a causal link between football and the silicon industry's ups and downs remains to be proved.

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