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Technology Stocks : Applied Materials No-Politics Thread (AMAT)
AMAT 252.25+0.9%Nov 28 9:30 AM EST

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From: etchmeister12/1/2010 12:57:03 AM
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EE times - Can you do the math?
VLSI (Santa Clara, Calif.) revised its projections for the chip and chip equipment markets in 2011 and 2012. The firm said it now expects chip sales to increase only 4.4 percent to $248.6 billion in 2011 and grow an additional 7.9 percent in 2012. VLSI previously said it expected chip sales to grow by 8 percent next year.

VLSI cited an increasingly difficult pricing environment, resulting from the rapidly increasing production capacity as the major contributor for sluggish sales growth in 2011. This challenge is not only limited to DRAM markets but also other major IC sectors as well, the firm said.

VLSI currently projects that the semiconductor market will grow by 31 percent this year, reaching $259.6 billion. The company had previously projected IC market growth of 32 percent in 2010.
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