US chipmaker Texas Instruments Inc foresees a rebound in the global semiconductor industry, with growth from the deployment of mobile Internet and broadband communications, a report said today.

Chief executive Thomas Engibous was quoted as saying by The Star daily that the sector should emerge from the slump following year-on-year growth in the second quarter after six consecutive quarters of contraction.

"The third quarter growth rate should be double digit," he said, also noting semiconductor consumers have depleted inventories stocked up during the industry downturn.

TI has invested some RM1.2 billion over the past 30 years in its Malaysian operations, which has a 3,100-strong workforce producing semiconductors, automotive pressure sensors and radio frequency identification systems.

Engibous was quoted as saying by Malay-language daily Utusan Malaysia that TI was expected to invest some RM100 million in Malaysia this year and in 2003, with allocations for an annual RM50 million investment each subsequent year.

Semiconductor market

Local managing director Tham Wai Keong was quoted as saying investment in 2003 would however, depend on the semiconductor market.

Engibous said he viewed the country as an attractive investment because of its business-friendly environment and well-educated labour force.

The report said the Malaysian outfit contributes some five to seven percent to TI's global operating profit. The US chipmaker commands about 5.5 percent of the global semiconductor market. — AFP