iSuppli, which produces research on a range of subjects including media, wireless communications and automotive telematics, believes that producers have been under pressure to meet demand and this has led to a more positive outlook.
Len Jelinek, director and chief analyst for semiconductor manufacturing, suggested that consumer spending in retail has "come back with a vengeance" after the economic downturn of stretching back to the end of 2008.
This is why iSuppli's revenue forecast for the industry now stands at $29.8 billion (£19.6 billion) for 2010, representing a 42.3 per cent increase on a year earlier.
Furthermore, by 2014, it expects total pure-play semiconductor foundry income to reach $ 45.9 billion, achieving a combined annual growth rate of 9.4 per cent starting from the $26.8 billion in 2008.
It also expects spending on capital equipment by manufacturers to increase by 123 per cent this year compared with last.
