Mannerisms

Last month the IMF raised its worldwide GDP forecast for 2010 from 3.1% to 3.9%.

The U.S. Index of Leading Economic Indicators is up 8.8%, the highest increase since 1983.

The Institute for Supply Management stated that the January 2010 US manufacturing sector Purchasing Managers Index (PMI) was a very strong 58.4 (any figure over 50 indicates growth). Moreover, the PMI order figure was 65.9, the highest since 2004.

China's manufacturing sector PMI was a very strong 57.4 in January of 2010. This was the highest PMI figure in China since the survey was started there in 2004.

China's GDP growth in 4Q09 was 10.7%. IC Insights believes that it is highly likely that China's GDP growth will be at least 10% in 2010, up from 8.7% in 2009.

Some companies (e.g., TI, Altera, ON Semi, Microchip, etc.) have stated that they currently expect an increase in 1Q10/4Q09 IC sales - which is unusual for Q4/Q1 sales figures.

IC unit volume inventories have been under control. IC supply is forecast to become even tighter in the second half of this year.

In 4Q09, 300mm IC fabrication capacity utilization was over 95%. Such high utilisation rates typically lead to rising IC average selling prices (ASPs) and a fast-growing IC market.

December US semiconductor equipment bookings rose to $863 million which was 3.5X the level of March 2009 spurred by high IC capacity utilisation and surging IC unit demand.

PC and cellphone unit shipments are expected to register double-digit growth rates. Windows 7 is forecast to give a boost to PC sales this year.