Chip revenue expected to grow 31.5 percent in 2010: Gartner

Gartner also forecast computer chip revenue of 314 billion dollars in 2011, a 4.6 percent increase over this year. Worldwide semiconductor revenue totaled 228 billion dollars last year.

"Semiconductor growth in the first half of 2010 was very strong, but it is becoming increasingly clear that the industry cannot maintain the momentum in the second half of 2010 and into 2011," Gartner research vice president Bryan Lewis said.

"While the impact of the European credit crisis has subsided, the global economic recovery is slowing, and there is concern that electronic equipment vendors are adopting a cautious stance, ready to cut production at the first signs of slowing customer orders," Lewis said in a statement.

Gartner said the personal computer supply chain "is showing the most evidence of a correction" and the outlook for consumer PC purchases in the third quarter is below seasonal growth.

"However, surging sales of media tablets are partially offsetting the weakness in consumer PCs, as they've begun to prove themselves a popular substitute for netbooks," Gartner said.

The Semiconductor Industry Association reported Monday that year-to-date semiconductor sales of 169.2 billion dollars were up 46.7 percent from the 115.3 billion dollars in the first seven months of last year.

The SIA said it expected chip industry growth of 28.4 percent this year.

(c) 2010 AFP