Microsoft Corp's Windows XP operating system, released last year, resulted in a bigger-than-expected rebound in PC sales, while a new generation of cellular phones is sparking demand for flash memory chips, he said.
Still, any rebound may be temporary. Dell Computer Corp, the world's largest PC maker, said it has been reducing the amount of memory chips it's installing in computers because prices of the semiconductors are beginning to hurt demand.
"Demand and prices are pretty closely linked," Michael Dell, the company's chief executive officer, told reporters in Hong Kong. "Prices of the chips have gone up, and demand has started to go down."



