Those who think the higher demand will necessarily improve profits might need have some rethinking to do in light of the latest forecasts for chip sales.
New Ventures Research last night issued a report indicating chip demand (units) would soar 18% in 2010, with memory in particular under siege. However, companies like Samsung are now saying they will not increase capex this year to meet the spike, meaning last year’s severe dropoff in investment for new fab capacity will be felt for some time to come.
