Gartner raised its revenue forecast for the global chip industry on Monday due to stronger than expected demand for PCs and mobile phones, as well as government stimulus programs that have boosted demand for chips.

The market researcher predicts global chip revenue will reach $226 billion this year, down 11.4 percent from $255 billion last year. The revised figure is an improvement over Gartner's previous forecast calling for a drop of 17.1 percent to $212 billion.