Raised forecast for the chip market

This year Gartner forecasts the chip market to grow 10.6 percent. That is a bit more than the 9.5 percent that was earlier forecast. According to EETimes Gartner raised its forecast due to incoming signals of increasing demand on PC:s. With this forecasted growth Gartner expects the chip market to reach $259.5 billion in 2006, up from $234.6 billion in 2005. Memory chips are expected to grow 15.5 percent to $57.4 billion. “I was pessimistic about the outlook of the DRAM market a couple of months ago because of the oversupply problem, but in the past month PC shipments grew and that boosted demand for chips,” the report quoted Andrew Norwood, a Gartner vice president, as saying.