STAMFORD, CT -- Worldwide semiconductor revenue will increase by nearly 20% this year on higher average selling prices and PC demand, says research firm Gartner Inc.

Semiconductor revenue will rise 19.5% year-over-year to $276 billion in 2010, the research firm said.

"We have seen clear evidence that the semiconductor industry is poised for strong growth in 2010," said Bryan Lewis, vice president and chief analyst.

Chip sales fell 9.6% year-over-year in 2009, although demand picked up in each of the last three quarters. Gartner said higher demand for PCs -- some forecasts call for 20% growth this year -- will drive a semiconductor recovery. Also, a capacity shortage will push DRAM prices higher, leading to 55% revenue growth in 2010.

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