Analyst: Chip market correction "imminent"

Dylan McGrath, EETimes
9/22/2010 12:56 AM EDT

SAN FRANCISCO—The business climate for the semiconductor industry is deteriorating, and leading indicators point to an imminent correction in the semiconductor market according to an analyst.

While the semiconductor sector has in 2010 enjoyed a dramatic rebound from a disastrous 2009, the party is nearly over, according to Robert Castellano, president of The Information Network, a high-tech market research firm.

Castellano predicted that a drop in sales of electronic gadgets would first impact the DRAM sector, which showed year-to-year sales growth of 135 percent in the second quarter. Castellano predicted that slowing PC sales would hurt microprocessor vendors Intel Corp. and Advanced Micro Devices Inc. and said semiconductor foundries would also feel the impact.

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