KUALA LUMPUR, July 14 (Bernama) -- Semiconductor manufacturers are expected to benefit from the sustained upward of global chip sales trend going into the second half of 2010.

In stating this, ECM Libra Investment Research said the uptrend would lead to a higher demand for assembly and testing services due to the higher volume.

Citing a latest figures from the Semiconductor Industry Association (SIA), ECM Libra said the global chip sales were on track to reach forecast of 28.4 per cent growth to US$290.5 billion in 2010, despite expectation of slower growth rates in the second half this year.

This will be buoyed by strong sales of personal computers, mobile phones, corporate information technology (IT) and industrial applications, and automobiles, it said in a research note Wednesday.

ECM Libra said another favourable factor for the industry was that global semiconductor inventory remained at low levels, indicating stockpiles were not replenished in the first quarter and that device manufacturers continued to operate on just-in-time fulfillment schedules.

"This will reduce concern of oversupply if the industry continues to maintain prudent inventory management should macroeconomic conditions weaken in second half 2010," it said.