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NEW TRIPOLI, PA -- While IC demand will grow 32% in 2005 to $45 billion, internal IC production will reach only $9 billion despite ongoing massive semiconductor fab construction.

According to a report by The Information Network (theinformationnet.com), China's IC industry is expanding rapidly. In 2005, China will produce 22 billion ICs, which will account for only 20% of domestic demand. Most high-end products used in computers and mobile phones must be imported.

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White Plains, NY -- Nortel and IBM have signed an agreement designed to support customized products across a range of market segments. As the first step in this relationship, the companies will establish a Joint Development,Center in Research Triangle Park, NC, to collaborate on the design and development of new products and services.

 

Nortel expects to utilize IBM engineering and technical services for a number of projects, aimed at broadening Nortel end-to-end broadband, Voice over IP, multimedia services and applications and wireless broadband offerings.

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PALO ALTO, CA -- Inventory throughout the supply chain decreased in the first quarter of 2005, albeit not as fast as sales/COGS, resulting in a moderate decrease in inventory velocity. 

Deutsche Bank analysts believe communications OEMs will likely work inventory levels lower in 2Q and 3Q in the face of only moderate end market demand (negatively impacting near-term EMS demand).

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