Bandwidth Boom Makes Chips More Attractive

May 4, 2010  |  

(Forbes.com) — The next leg of the chip cycle is underway, sparked by a bandwidth boom that began a year ago as the world emerged from the recession, but new users, implementations and clear-cut productivity gains are now causing this to accelerate. So strong is the need for servers, network switches, fast cellular base stations and optical grids that chip usage just from infrastructure alone will drive the chip industry the next two or three years. This, on top of all the new user devices. The latest industry figures point to 58% year-over-year growth in chip sales, growth not seen since the 1990s boom that lasted the better part of that decade. Expectations might be meager but the boom is on. The V going ex-atmospheric.

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