EL SEGUNDO, CA, Sept. 9 -- Market research group iSuppli Corp. today trimmed its 2005 chip forecast after worldwide semiconductor revenue growth recently showed signs of slowing.

The slowing will mainly affect fourth-quarter revenues, iSuppli forecast, saying second-half strong growth will be in the range of 10% higher than the first-half. First-half global semiconductor sales grew 31.4% year-on-year, but second-half sales will decelerate to 20% growth, the firm said.

iSuppli revised its 2005 forecast to 9.6%, down from 11.8%. The firm upped its forecast for 2004 one point, to 25.4%.

iSuppli forecast 1H 2005 sequential growth of less than 2%, followed by a pickup to 6% in the second half.

DRAM sales are expected to take a dive in 2006, limiting overall semiconductor growth to 2%. iSuppli predicts 2006 will mark the bottom of the semiconductor downturn.