chip sales

After two years of go-go growth in the semiconductor sector as customers restocked lean inventories, the industry is expected to post more modest growth in 2011 as it faces lower average selling prices for chips and the cyclical demand for semiconductors hits a lull.

After lowering its PC sales forecast for the second half of 2010 on Tuesday, research firm Gartner today raised its forecast for semiconductor revenue.

Semiconductor sales worldwide rose more than 50% in the first half of the year, the Semiconductor Industry Association announced Monday, but investors shouldn't assume that implies a slam dunk for the second half.

Intel (INTC) reportedly has reached a preliminary settlement with the Federal Trade Commission over allegations involving its sales and marketing practices

Thanks to strong growth in India and China, chip sales could jump 28.4% in 2010, according to the Semiconductor Industry Association's mid-year report. However, growth will slow dramatically in 2011 and 2012, the SIA predicts.