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VLSI Research raises IC projections on stronger 1Q demand

Posted: 05 Apr 2011 ?? ?Print Version ?Bookmark and Share

Keywords:IC growth forecasts? IC sales growth? IC unit growth?

Stronger demand in the first quarter has prompted VLSI Research Inc. to revise its 2011 IC growth projections.

The research firm now predicts a 12.2 percent increase in IC sales for 2011, up from its original forecast of 8.9 percent. ''The first quarter came in so hot,'' said G. Dan Hutcheson, CEO of VLSI Research, adding that chip sales rose 11.6 percent in the first quarter, compared to a historical rate of minus 1.8 percent for the period.

IC unit growth was also bumped up from 11 percent to 14 percent. ''The primary reason for raising the IC forecast is that Q1 has set a high base for the year,'' according to the firm.

''Even with a significant pullback in coming quarters, as foreseen, there will be double-digit growth in 2011,'' VLSI said. ''This breakneck pace is unsustainable, given that electronics sales are growing at a much lower rate. Rising oil prices, inflation and the Japanese crisis will also dampen growth. Therefore, we expect the momentum to subside considerably in the next three quarters, with quarterly growth being well below the seasonal trend.''

- Mark LaPedus
??EE Times

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