Japanese DRAM chip maker Elpida Memory said it will outsource production to Taiwan's Winbond Electronics, as it tries to consolidate its position in Taiwan against U.S. rival
Micron.

SMIC, China's largest contract chipmaker, said its long-serving CEO has been replaced by another industry veteran, in a move that could pave the way for consolidation in China's
struggling chip sector.

The Semiconductor Industry Association reported that its sales are expected to grow by 10 percent to $242.1 billion in 2010 and by more than 8 percent to $262.3 billion in 2011 in its annual industry forecast.

A California jury ruled on Tuesday that Semiconductor Manufacturing International stole and used trade secrets from rival Taiwan Semiconductor Manufacturing, possibly putting SMIC on the hook for more than $1 billion in damages for TSMC, a lawyer for TSMC said on Tuesday.

Global semiconductor sales continued to improve in the third quarter, according to an industry trade group, though revenue remains below year-ago levels.

Texas Instruments beat earnings forecasts Monday and posted better-than-expected revenue, sending shares higher in afteroon trading.

Intel reported a profit excluding one-time items that was lower than last year but which blew out analysts' expectations.

Investors typically look to small cap stocks as the leaders out of a recession. More nimble than their large-cap counterparts, small cap companies are quicker to adapt during both economic downturns and periods of recovery.

Shares of Texas Instruments climbed in premarket trading Tuesday after the chip maker raised its profit forecast for the quarter, a move seen by analysts as a tentative sign of recovery following a brutal six months for the semiconductor industry.

Chip maker Texas Instruments is raising expectations for its second-quarter profit and revenue.

Worldwide sales of semiconductors will fall 21 percent this year, the Semiconductor Industry Association projected Friday.

Chip designer Analog Devices posted sharply lower profit and sales for its fiscal second quarter Tuesday amid the economic turmoil that has dampened global chip demand.