iSupply sees semiconductor recovery in 2010

Research firm iSuppli believes global semiconductor sales will fall less than previously forecast this year and will return to growth in May 2010 due to an increase in consumer spending driven by government stimulus packages. Analysts believe global semiconductor sales will decline 16.5 percent this year to $216.1 billion, versus a previous forecast for a 23 percent drop. Semiconductor revenue is expected to grow 13.8 percent to $246 billion in 2010.

The semiconductor industry has been pummeled by a global recession that has drastically weakened corporate IT spending and hurt demand for everything from computers to cell phones.

But analysts point to signs of stabilization and a possible recovery. Semiconductor sales in the second quarter were strong compared with the first quarter, and there is improving supply chain visibility and demand, iSuppli said.

Source: Reuters