TI halves global chip growth forecast

TI halves global chip growth forecast
Tom Foremski
Texas Instruments (TI) has lowered its estimates of global chip market growth this year to five per cent compared with its earlier estimates of 10 per cent growth.
TI reported fiscal first quarter profits 90 per cent lower than for the same period last year, earning $11m on revenues of $2.187bn, compared with $2.263bn one year ago.
Special charges and sharply lower prices for DRAMs were responsible for the disappointing profits, TI said. But there was some good news, with a strong increase in demand for DSP chips, primarily from customers in wireless communications markets.
While it expects chip markets to grow slowly this year, TI predicts that 1999 will be a strong year for chip companies.

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