"The strong semiconductor growth in 2010 has driven semiconductor capital growth to all-time highs," Gartner's Managing Vice President Klaus Rinnen said in a statement.
Samsung, Hynix and Toshiba have indicated that their reserve of components has been decreasing, therefore they will allocate additional resources to meet increasing demand. Samsung alone has earmarked ₩11 trillion (roughly US$9.6 billion) on the chips in 2010.
With the industry ramping up capacity, market watchers expect to see prices fall from 6 to 22% in Q4, which will mean diminished revenue for the companies making the chips.
Gartner estimates that the moderate growth period will last though the next two years and then start a slow down in 2013 back to previous levels.
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