It has also raised its view on the sector to "constructive" from "cautious", observing that inventory correction is nearing an end.
JP Morgan Securities named Texas Instruments as its top pick on expectations of an inventory replenishment in the supply chain during the last two quarters of 2011.
"The inventory correction appears to be mostly over as demand from several end markets appears to be improving," remarked analyst Christopher Danely.
Mr Danely claimed recently that the stimulus-driven economic recovery would eventually collapse.
"While we continue to believe this is likely at some point in the future due to unsustainable debt, we also view it as unlikely to happen for at least the rest of the calendar year."
Meanwhile, ON Semiconductor intends to spend $30 million to upgrade and expand its Oregon computer chip factory.
Indeed, the firm plans to add up to 70 jobs to its operation in Gresham.
A report appearing in the Oregonian said that the expansion is part of a $250 million investment by the Arizona company to improve its manufacturing capabilities.
