Chipmakers report revenue upturn

Intel and National Semiconductor meet targets

The chip market could be heading for recovery following encouraging financial results from Intel and National Semiconductor.

Intel said last week that it expected a "seasonally strong" second half to the year, after announcing it is on target to meet its second-quarter financial predictions. The firm expects second-quarter turnover to fall within the $6.2bn to $6.8bn predicted when it gave its first-quarter results on 17 April. Analysts had warned that it could post turnover of below $6bn.

"The company continues to see stability in the microprocessor business and weakness in its communications-related businesses. Intel still expects a seasonally stronger second half," the company said in a statement.

Paul Otellini, general manager of Intel Architecture, added that the firm is unlikely to make any further job cuts following the loss of 5000 staff in March. "We feel comfortable with the measures we have introduced," he said.

Otellini was less forthcoming about sales of the company's flagship Pentium 4 desktop processor. Intel initially predicted that it would ship 20 million P4 chips this year, but Otellini declined to comment on reports that it has so far sold just over a million. "We have a range inside the company that we're currently within," he said.

National Semiconductor said it had broken even for its fourth quarter ended 27 May 2001, with turnover of $401m.

"This was a tough quarter for our industry," said chief executive Brian Halla. "It is possible that the worst quarter may be behind us, because orders have improved in May."