Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: etchmeister who wrote (19285)	6/7/2006 1:27:18 PM
From: Proud_Infidel	Respond to of 25522

Re: If second half turns out better than expected they will start slamming equips because of 2007 - the peak is somewhat a moving target Precisely. This is the sector they love to beat....and if historically there have been vicious cycles, then this is all too easy for them to exploit.

To: etchmeister who wrote (19285)	6/7/2006 1:33:47 PM
From: etchmeister	Read Replies (1) \| Respond to of 25522

Rick Hill calls it "drinking each other's bathwater" - I hope Rick will take his Zoloft prior to providing mid quarter update Gartner sees 10.6 pct rise in 2006 chip sales Wed Jun 7, 2006 1:19pm ET15 Email This Article \| Print This Article \| Reprints [-] Text [+] By Scott Hillis SAN JOSE, Calif., June 7 (Reuters) - Worldwide sales of microchips are expected to rise 10.6 percent this year, driven by mobile phones and laptop computers, but growth will peak in 2008, research firm Gartner Dataquest said on Wednesday. Sales growth of chips, also known as semiconductors, is expected to accelerate to 14 percent in 2008, before stalling in 2009, when the rate will rise less than 1 percent, Gartner said in a mid-year update of its industry forecast. The predictions reflect a growing view that the industry, once subject to extreme boom-bust cycles, is on a track of slower, but more stable growth as chips find their way into a vast array of consumer products. "These numbers also reflect a PC transition from desktop to laptop," said Andrew Phillips, Gartner's managing vice president of semiconductor research. "Laptops have become more fashionable, and replacement in that market is certainly growing." Gartner said personal computer shipments would increase 9.8 percent in 2006 and stay above 9 percent through 2009. Within that, laptop unit sales were seen rising nearly 26 percent this year, but would slow to just over 14 percent in 2010. Shipments of mobile telephones would rise 18 percent in 2006, driven by emerging markets and the transition to the latest generation of phones capable of handling video and Internet services, the research group said. Capital expenditures were expected to rise 8.8 percent this year, and Phillips said the amount of production capacity added over the next couple of years would determine the severity of the next downturn. "2009 is difficult to forecast...because it is the capital expenditure plans that are being made at the moment that will have the greatest impact on 2009," Phillips said. New semiconductor facilities typically take two years to build. Earlier, the Semiconductor Industry Association issued its own forecasts for this year and next, predicting that 2006 sales would grow 9.8 percent, then rise 11 percent in 2007.