Y2K issues may fuel recovery
techweb.com
<< While semiconductor sales have picked up in recent months, the need to update systems for the year 2000 will be a key driver in sustaining the chip industry's recovery, according to a report released by IC Insights Inc.
Concern about fixing the Y2K software bug is likely to fuel electronic- equipment and chip sales into 2001, the Scottsdale, Ariz., research firm said.
"The IC industry is currently in the embryonic stage of the next boom period," said IC Insights' Bill McClean. Other analysts have acknowledged an increase in demand, but have stopped short of calling it a full-blown recovery because of seasonal affects. IC Insights notes, however, that the recent uptick is 87% higher than the traditional seasonal upturn.
In September, worldwide semiconductor sales exceeded $12 billion, making it the best month since last September, according to the firm. And, based on a three-month average, sales increased 4.3% from $9.8 billion in August to $10.2 billion in September. >>
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