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Chip Foundry Revenues To Jump 40% In 2010

Following a host of chip companies reporting significantly higher results for the last quarter, revenue should hit $35.88 billion by 2013 say ISuppli

Following the 11% decline of chip demand a year ago, at the worst point of the global recession, industry researcher iSuppli now predicts a record revenue of $24.82 billion this year, up from $17.79 billion a year earlier.

Many analysts and firms have given bullish outlooks on the information-technology industry as consumers begin to crack open their wallets again after being cautious about spending--especially on non-necessities--during the recession.

"Worldwide consumers again are purchasing electronic products," said Len Jelinek, Director and Chief Analyst for semiconductor manufacturing at iSuppli. "Unless conditions deteriorate once more, previously pent-up need for new consumer products will fuel foundry demand."

The leading foundry manufacturers are ready to meet increased demand from the consumer and wireless markets, which will lead revenue growth in the foundry business to outpace the semiconductor industry in 2010 added Mr. Jelinek.

ISuppli also said it sees a number of acquisitions among foundries occurring this year, some of which have already been announced, as so-called Tier 2 foundries may need to extend capacity. Those types of deals "are sure to result in a dramatic reshaping of the foundry industry in 2010 and beyond," iSuppli said.
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