NEW TRIPOLI, PA – Chip purchases are sending the market toward a fast recovery in 2010, says The Information Network, according to published reports.

Leading firms have raised capex plans for this year, which can be a significant leading indicator of improvement, says the research firm.

Another sign for improving conditions is how much chipmakers are willing to spend on advanced equipment to create new products.

“We nevertheless are cautious about 2010, because all we see going forward are technology purchases rather than capacity purchases," said Robert Castellano, president of The Information Network. "Utilization is increasing, but with 31 fab closures in 2009, this is analogous to increased productivity due to layoffs.”

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