Gartner has made a last minute upward adjustment to its growth projections for the semiconductor industry before the year is out and full quarter figures are compiled from actual figures.

The market research firm is pegging growth at 11.3 percent for 2006 compared to 2005. Revenues are expected to come in at $261.4 billion in 2006.

The change is significant as Gartner has previously pegged growth between 8 and 9 percent in September/October slightly down from a February forecast of 9.5 percent for the year. Indeed the new figure is considerably higher than the one the research firm gave in December 2005 for this year, with growth put at only 7.5 percent.

Though fears of oversupply in the memory markets had tempered overall growth projections for most of the year, DRAM has bounced back while NAND Flash has continued in an oversupply environment. Gartner now thinks the supply side for DRAM will remain tight while inventory levels in general will burn-off by the end of Q107. Revenues are now expected to be in the single digit levels for 2007, according to Gartner.