Gartner Inc., a technology research & business firm based in Stamford, CT USA has reported that the makers of semiconductor  chips will increase their capital expenditures by 96% to US$50.7 billion in 2010. In 2009 they spent UD$25.9 which was a number that fell dramatically -  by 41% when compared with 2008 levels.

"The strong semiconductor growth in 2010 has driven semiconductor capital growth to all-time highs," Gartner's Managing Vice President Klaus Rinnen said in a statement.

Samsung, Hynix and Toshiba have indicated that their reserve of components has been decreasing, therefore they will allocate additional resources to meet increasing demand. Samsung alone has earmarked ￦11 trillion (roughly US$9.6 billion) on the chips in 2010.

With the industry ramping up capacity, market watchers expect to see prices fall from 6 to 22% in Q4, which will mean diminished revenue for the companies making the chips.

Gartner estimates that the moderate growth period will last though the next two years and then start a slow down in 2013 back to previous levels.