Chip market is in recovery

Things are on the rise again in the semiconductor market. Taiwanese foundry UMC today said its revenues in February were nearly twice as high as last year, whereas US chip maker Texas Instruments revised its earnings outlook upwards.

UMC, the world’s second-largest foundry after rival TSMC, saw revenues rise from NT$3.14 billion to NT$8.63 billion year over year, a growth rate of 174.66 percent. Compared to January, sequential growth was just 0.4 percent.

Revenue in the first two months 2010 totalled to NT$17.24 billion, in contrast to NT$6.29 billion in the same period last year.

Texas instruments is also witnessing stronger growth. The chip maker expects revenue in the first quarter to be between $3.07 to $3.19 billion, correcting previous expectations of $2.95 to $3.19 billion upwards.

The chip market is expected to recover this year, fuelled by increasing demand for mobile phones and PCs. According to new research by DRAMexchange, 10.5 percent more handsets are going to go over the counter than in 2009. Demand for flash and mobile DRAM memory products will spike, as smartphones garner more and more market share.