STAMFORD, CT – The worldwide semiconductor market will rise 27% to $290 billion this year, said Gartner.

The firm raised its forecast from 20% growth, citing a strong recovery in PC and cellphone sales.

However, the analyst sounded a warning that chip demand is outpacing end-product sales.

"Sequential semiconductor growth has been very strong over the last five quarters, well above seasonal norms, and manufacturing capacity is tight," Bryan Lewis, research VP at Gartner, said in a statement.

"Chip revenue growth is clearly outpacing system revenue growth, and that is a concern."

However, second-half 2010 semiconductor market growth is expected to slow slightly.

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