Rebound Of 18% Seen In Chip Market


It is now becoming widely accepted that the chip market hit its bottom in the first quarter. What remains a matter of debate is how quick the rebound will be.

Researchers at IC Insights suggest the bounce will be fairly significant – in fact, an 18 percent surge to be precise.

In a Wednesday report, the firm said the market should benefit from a strong holiday period, a restocking of depleted inventories and an increase in worldwide GDP (after a decline in the first half of the year).

Here are some data points from the study:

*Second half cellphone and PC unit shipments are to be up by 18 percent and 15 percent, respectively, from the first half;

*China's second-half gross domestic products is to rise almost 9 percent with the fourth quarter forecast to be more than 9 percent;

*The chip foundry market almost doubled from the first to the second quarters.