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Study shows chip sales sagging

TEMPE, Ariz.-Research firm Forward Concepts lowered its 2005 digital signal processor forecast to 5 percent revenue growth, or to about the $8.2 billion level.

The market research firm also lowered its earlier 2006 forecast to 15-percent growth and revised its forecasts through 2009, saying it expects strong DSP chip sales growth next year in W-CDMA and EDGE. The firm said traditional GSM has become saturated in developed countries. Although DSP chips go in a variety of electronic gadgets, wireless stands as the largest DSP opportunity.

Forward Concepts noted an uptick in shipments to the Asia-Pacific region during the third quarter, indicating a recovery in China’s cellular market. The firm also highlighted improvements in European shipments but noted shipments in the Americas slipped. Shipments to Japan dropped more than 10 percent, indicating a slowing cellular market in the country, said the firm.

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