EL SEGUNDO, CA -- iSuppli Corp. raised its 2009 forecast for semiconductors and electronics equipment, citing a stabilizing economic environment and improved supply chain visibility.

The research firm today projected semiconductor revenue will drop 16.5% year-over-year to $216.13 billion, up from an earlier forecast calling for a 23% decline.

Electronics equipment sales are now projected to drop 9% year-over-year to $1.39 trillion, up from a 9.8% drop.

iSuppli said current quarter semiconductor shipments are up on higher demand for PCs and mobile phones. It also cited national economic stimulus plans. "The global economy in the second quarter was boosted by worldwide economic stimulus efforts. Although the American Recovery and Reinvestment Act really didn’t go into effect during the period, China’s stimulus efforts spurred a massive increase in consumer purchasing in the country, benefitting worldwide economic conditions," iSuppli said.  

While sequential demand is higher, sales will not begin to increase on a year-to-year basis until May, iSuppli said. 

The market won't return to its 2007, pre-downturn levels until 2012, iSuppli estimates. Global semiconductor revenue is expected to rise 3.4% to $282.7 billion that year when compared with 2007.