Chip sales will remain weak into 2010

Two research firms have predicted that global semiconductor chip sales will fall in 2009 and a recovery will not come until at least 2010.
Gartner predicted a 24 percent decline in chipset sales in 2009 and IDC forecasted a 22 percent decline in addition to a 45 percent drop in capital spending in the chip industry. Gartner predicted chip sales of $194.5 million in 2009.  

Chip sales tumbled toward the end of 2008 as the recession took hold. The forecast for 2009 has been downbeat, as demand is expected to decline for cell phones and other consumer electronics.

The major semiconductor companies posted dismal fourth quarter results. Freescale posted a $4.03 billion loss in the quarter; Broadcom reported a $159.2 million loss; Qualcomm reported a 56 percent drop in year-over-year net income; and Texas Instruments said it would cut 3,400 works amid a steep drop in profits.

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