Beancounters at iSuppli claim that the global semiconductor industry is set to do jolly well in 2010.

However it warns that the year is likely to deliver only a modest recovery when looked at from a longer-term perspective. iSuppli predicts that global semiconductor revenues will amount to US$279.7 billion in 2010. While this represents a 21.5 per cent rise from US$230 billion in 2009., However it is only eight per cent more than the year before and a pathetic 2.3 per cent expansion compared to 2007.

Dale Ford, senior VP, market intelligence services, for iSuppli said that amid double-digit growth in revenues, rising prices, supply constraints and soaring capital equipment purchases, enthusiasm over the semiconductor industry's 2010 outlook has hit a fever pitch. But it only looks good when you compare it to the really pants year we had before that.

True it is recovering at the strongest rate in history, which is something to be happy about. However iSuppli is suggesting we should not get too happy about it and should stick forks into our legs if we get too optimistic.