Sales of machines to make semiconductors will rise much faster in 2006 than initially forecast due to strong demand for electronic goods such as mobile phones, according to U.

publicité

S. chip market research group VLSI Research. Worldwide sales of chipmaking equipment are expected to rise to $62.8 billion in 2006, up 23.2 percent from 2005, against initial forecasts for a 13 percent increase.
The increase in the forecast was prompted by strong first-quarter equipment sales of $15 billion, 20 percent more than the prior quarter and 9.5 percent above the year-ago period. VLSI Research warned that the surge in investment may be too much and that a correction loomed in the second half of the year.
The ratio of investment in equipment to sales of chips is running at 31 percent this year. This is well above the healthy investment ratio of 20 percent, VLSI Research said.