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VLSI ups chip forecast

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CIOL Bureau
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CHENGDU: In the midst of increasing demand, VLSI Research has raised its chip forecast. The 2010 IC sales forecast has been increased from 22 percent to 25 percent.

The IC units have been raised from 19 percent to 24 percent. The 1Q’10 are projecting a super cycle for ICs with growth rates increasing to 40 percent. The results for 1Q’10 came in higher than predicted.

Many forecasting firms have raised their IC forecasts to 30 percent and above. The VLSI has said that the company is cautious of the IC super cycle scenario taking into consideration the happenings at the macro economic level. The European credit crisis is regarded to be slow down the recovery of the global economic recession even though it is expected that it would put the economy back into recession.

The company said that the IC forecast has been kept at the low side because the momentum is expected to slow down in the second half of the year. Despite the recession the IC sales are expected to grow on a higher scale than the electronics sales and that is why the company is laying their concern over inventory build-ups.

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