Sales of computer chips will increase by over 27% this year compared to 2009 as the market outlook improves as a result of accelerated demand in all regions and product categories.
According to Gartner worldwide semiconductor sales in 2010 will reach $290bn (£198.6bn), which will represent a 27.1% increase on the $228bn 2009 revenue.
The outlook for the semiconductor industry has improved from Gartner's first quarter 2010 forecast, when it projected sales growth of 19.9%.
"Sequential semiconductor growth has been very strong over the past five quarters, well above seasonal norms, and manufacturing capacity is tight," said Gartner analyst Bryan Lewis.
"Gartner's new semiconductor forecast has below-average growth in the second half of 2010 as we are anticipating a minor correction to realign semiconductor sales with electronic system sales.
"Even with this minor correction, we are still expecting very strong growth and record semiconductor sales in 2010."
Gartner said the PC and mobile phone markets will account for about 40% of the chip market's growth in 2010.