Intel sees autumn boost for processors

Intel's chief executive, Craig Barrett, said on Wednesday that he expects demand for computer chips to rise in the third and fourth quarters of this year, boosted by the "back-to-school" market and Christmas demand. The remarks gave a rise to shares of European chip-related companies including UK chip designer ARM Holdings.

However, industry analysts said that any imminent industry recovery will be seen as premature, and predicted that confidence in the market will be a long time coming.

ARM rose 24p, or 8.16 percent, to 318p in early trading. ASML Holding, which makes chip equipment, rose 4.96 percent in US trading to close at $21.43. German chip maker Infineon rose 3.44 percent to close at $26.43.

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