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iSuppli trims semiconductor revenue forecast

iSuppli has reduced its forecast for global semiconductor revenue growth in 2007 to 3.5% from its previous prediction of a 6% increase. Although chip revenues are growing, says the company, stronger second half conditions will not offset the impact of first half weakness. In iSuppli’s new forecast, 2007 semiconductor revenues will reach $269.9billion.

“The major cause of the first half weakness was a 13% sequential decline in revenue for memory, led by DRAM and NAND type flash,” said iSuppli principal analyst Gary Grandbois.
However, global revenues are expected to grow by 10% in the second half, not only due to normal year end seasonal strength, but also because of a surge in memory prices and revenue and a stronger end equipment market.

Graham Pitcher

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