Intel chairman Andy Grove has warned companies not to get their hopes up about a surprise recovery in the semiconductor sector, after recent reports that the industry might be improving.
Speaking at the International Electron Devices Meeting held by the Institute of Electrical and Electronics Engineers, Grove insisted that very little had happened to overall chip sales.
He told Reuters after his speech that he could not be optimistic that the industry is out of the woods.
Last week Intel, AMD and Fairchild Semiconductor International raised their fourth-quarter revenue outlooks, maintaining that sales of PCs and mobile phones were going to be better than anticipated.
Global sales of semiconductors fell some 30 per cent last year, and Intel's sales dropped 21 per cent to $26.5bn.
Grove said that the current chip downturn is unique because it followed the massive internet boom of the late 1990s.
"[The industry] is operating, in retrospect, way ahead of the underlying demand," he explained. "The excess of the late 1990s was so much bigger than previous excesses."
Grove added that companies need to cut back on chip making capacity in factories around the globe.
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