VLSI updated its forecast to show a 4% rise for semiconductors, with a 5% decline for semiconductor production equipment, which is being held down by wafer fab utilization rates that are below 90%. Still, this was an improvement from the December forecast, as VLSI noted several positive driving forces: Order activity had moved higher, since the start of the year; Foundries are becoming more active as utilization rates begin to rise; and most importantly VLSIresearch’s CPPI (Chip Price/Performance Index) has started beat Moore’s Law again. VLSI’s Supply-Demand status metric has improved from glut to loose.
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