Industry tracker IDC expects 15.1 per cent growth in global microprocessor volume sales in 2010, after record units in 2009's third and fourth quarters.
Intel and Advanced Micro Devices (AMD) have posted better-than-expected earnings, fueling hopes for a strong recovery in chip demand in 2010 as consumer spending firms and corporations free up spending on technology again in the latter half of 2010.
IDC analyst Shane Rau saw a change in the recent trend toward lower-performance, lower-cost chips that dominated popular netbooks - basic laptops for surfing the web and email. He noted an uptick in demand for higher-performance microprocessors in the fourth quarter that pushed average selling prices up 6.7 per cent from the previous quarter.
"The overall PC processor market is moving aggressively into 2010," Mr Rau said. But he added that there was some concern for a seasonal, sequential down-tick in the current quarter after strong holiday sales.
"Combined with healthy consumer spending, the resumption of corporation spending will lead to a healthy 2010."
In terms of revenue growth for the sector, Mercury Research analyst Dean McCarron said Intel and AMD will continue to rely on market expansion into new form factors, such as tablets, as well as growth into emerging countries to offset cheaper selling prices.
Reuters