Global chip recovery could last for up to three years

Global chip recovery could last for up to three years
Tom Foremski
The global chip recovery is real and it will last for about two to three years says a leading chip industry analyst speaking at a major technology conference in San Francisco.
Jonathan Joseph, senior semiconductor analyst for NationsBanc Montgomery Securities said that strong sales of PCs and network communications equipment are driving chip demand. And chip makers are producing products faster than they are adding production capacity which is helping to limit over production in key areas.
“We could have a severe shortage of memory in 2000 if the Japanese and Koreans don’t start spending on new fabrication facilities,” Joseph said at the annual NationsBanc Montgomery Securities Technology Week Conference.
Microprocessor sales are leading chip market growth and DSP chips could grow by as much as 27 percent annually over the next three years.

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