Demand for electronic devices skyrockets -- can semicon manufacturers keep up?

TORONTO, CANADA: The Bedford Report is looking at the Semiconductor - Broad Line Industry, and has issued Analyst Reports on Intel, Maxim Integrated Products, Avago Technologies and NXP Semiconductors.

After a poor start to 2009 prompted companies to reduce investment and cut production capabilities, resurgence in microchip demand in 2010 has left these companies unable to meet all demand for microchips.

Although performance in this industry is expected to be strong, inability to increase production may limit the upside companies see in this market as the microchip manufacturers are already operating at 96 percent of capacity. Even with investment in the semiconductor industry expected to increase by 84 percent this year, any increases in microchip production won't be realized for many months.

In recent weeks, the semiconductor companies have seen less than stellar performance in share price. This has had the effect of raising dividend yields on these stocks up to levels not normally seen. With economic recovery on the horizon, it may be time to start looking at the microchip companies.