Semiconductors' Spending To Be Up In 2011

Piper Jaffray expects capital spending to increase over the next year for the semiconductor and enabling technologies markets, believing that foundries and NAND flash makers will need to continue spending aggressively in order to meet demands. Growth for the flash bits per wafer is slowing while the demand for tablets, smartphones and other mobile devices is driving 80-110% of annual bit growth in the NAND market, according to Piper Jaffray. Based on Piper Jaffray estimates, the spending for 2007-2011 on capital intensity averaged $40B, which Piper Jaffray believes is not enough spending to support 10% annual unit growth. Current Piper Jaffray picks for the market include: Altera Corporation ALTR $28.70 Atheros Communications ATHR $25.06 Intel Corporation INTC $18.81 Linear Technology Corporation LLTC $31.53 Monolithic Power Systems, Inc. MPWR $16.73 Nanometrics Incorporated NANO $13.02 Power Integrations POWI $30.00 Silicon Laboratories SLAB $35.98 Teradyne, Inc. TER $10.30 Is AAPL a Buy, Sell or Hold? Click Here.