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Gartner expects big jump in chip sales

2010 looking rosy

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Analyst group Gartner reckons chip sales will grow 27 per cent this year compared to 2009.

The total market will be worth $290bn, up from $228bn last year.

In the first quarter the group was predicting growth of 19 per cent for the full year but it is now seeing faster growth thanks to a quicker, and broader, recovery than expected.

PC and mobile phone sales will drive 40 per cent of this growth. Average selling prices for computer chips are firming up, and the market as a whole should grow by 15 per cent.

Bryan Lewis, research VP at Gartner. "Chip revenue growth is clearly outpacing system revenue growth and that is a concern. Gartner's new semiconductor forecast has below-average growth in the second half of 2010 as we are anticipating a minor correction to realign semiconductor sales with electronic system sales.

"Even with this minor correction, we are still expecting very strong growth and record semiconductor sales in 2010."

The market for DRAM is expected to leap 78 per cent this year thanks to a growing market and rising prices.

Analysts do not believe tablet devices like the iPad will have any impact on the chip market before 2013.

It expects growth to continue to 2014 - as far as Gartner looks into the future. ®

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