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Survey: Slower growth, volatile profits for chip makers

Sharon Gaudin | Jan. 3, 2008
An increased number of semiconductor vendors expect their revenue growth to slow, which could play a role in making profitability highly volatile in the chip industry over the next five years, according to a study released today by KPMG LLP.

Olds suggested that the best approach for chip makers might be to "gang up with other bright guys and get the technology right together."

In fact, KPMG predicted that the likelihood of slower growth and uncertain profits will spark a new wave of mergers in the chip industry.

"Companies will try to buy new products and innovations, rather than getting them through R&D," Matuszak said. "We'll see further consolidation, and more companies outsourcing their manufacturing so they can focus on innovation."

 

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