"These comments beg the question how will the equipment market grow 50-plus-percent in 2010 with no new fabs and no new capacity additions, when it dropped nearly 50% in 2009 with no new fabs and no new capacity additions?"

Abu Dhabi's ATIC, which helped create Globalfoundries when AMD spun off its manufacturing business, is looking to assume full control of the company.

Hynix Semiconductor has agreed to pay US$3.32 million to settle a claim in the US accusing the company of price-fixing on memory chips, according to a US court record.

China's Advanced Micro-Fabrication Equipment Inc. (AMEC) also made a payment to Applied Materials of an undisclosed amount, and the parties agreed to collaborate on projects in the future.

Rambus, which designs memory chips, said that an administrative judge for the US International Trade Commission has ruled that graphics chip maker Nvidia has violated three of its patents.

The European Union has approved Oracle's US$7.4 billion takeover of fellow computer firm Sun Microsystems. Oracle said it now expected to complete the deal shortly.

China says its dispute with US search giant Google should not be linked to Beijing's relations with Washington.

Under the terms of the agreement, government officials said Samsung must build four manufacturing plants in Ontario, promising 16,000 direct and indirect jobs over the next five years.

MoneyToday, citing unnamed industry sources, said that Samsung was expected to set this year's capital expenditure for the semiconductor business at about 7 trillion won (US$6.1 billion). The Korean vendor is also planning a new chip production line in its domestic plant, marking the first time in years that it would add a line.

"We could have done a lot more business," said AMD CEO Dirk Meyer. "We are seeing progress both in the delivery of wafers and the underlying yields. But we are constrained today."

450mm production fabs could be pushed out to 2015 or 2016 - or two years later than some had hoped, according to analysts. And EUV may miss the insertion into the 16nm node, thereby pushing the technology out to the 13nm logic node in 2015.

A settlement between Samsung Electronics Co. (005930.SE) and Rambus Inc. (RMBS) in their long-running legal battles could push co-defendents Micron Technology Inc. (MU) and Hynix Semiconductor Inc. (000660.SE) to do the same, instead of risking billions in potential damages.

Both Seagate and rival Western Digital have seen demand for disk drives return even as supplies of the devices remain low, pushing up profits.

Hard disk drive maker Western Digital has posted a sharp increase in its fiscal second-quarter profit as sales grew amid a recovery in the technology sector and the company trimmed costs.

Chinese authorities have signaled that bank lending would slow significantly in 2010, the latest in a series of moves intended to forestall inflation and stave off bubbles in the stock and property markets.

China has said its economy expanded by 8.7% in 2009, exceeding even the government's own initial expectations.