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  • IC prices will bottom out in second quarter

    Prices will benefit from semiconductor demand growth in low-inventory market

    By Jim Carbone -- Purchasing, 6/10/2009 4:03:00 PM

    Average prices for integrated circuits will bottom out in the second quarter and then increase modestly through the rest of the year, according to researcher IC Insights.

    The average IC price was $1.40 in the first quarter and will drop to $1.37 in the second quarter. However, the price will rise to $1.39 in the third and to $1.42 in the fourth as chip demand builds. For the year, the average price of a chip will increase by about 1% over 2008, according to the researcher.

    While the IC industry revenue will decline by about 17% from 2008, there will be sequential quarterly growth in revenue and unit shipments. Integrated circuit revenue will grow each quarter, rising from about $40 billion in the first quarter to $51.2 billion in the fourth quarter. Unit shipments will increase from 28.5 billion in the first quarter to 36 billion units in the fourth.

    Also see: Standard logic prices could rise in third quarter

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