31.   Manufacturing robust but tempered by weakness in computer memory chip industry.

32.   Meanwhile, all along the valley, dozens of companies with ties to the fast-growing semiconductor chip industry have sprung up.

33.   National has been battered by the same forces causing layoffs and missed earnings across the chip industry, including lower sales in Asia and backed-up PC inventories.

34.   Nicholas also might have pointed out that this sort of thing is common in the chip industry.

35.   Not that all worries about Texas Instruments and the chip industry are over.

36.   Now, Chang has declared that the future of the global chip industry lies in China.

37.   Of course, much of the credit goes to the booming chip industry, which has posted three years of spectacular growth.

38.   Other analysts agree, but they warn that a recovery for the memory chip industry, which is plagued by overcapacity, may be a long time in coming.

39.   Prolonged failure could eventually mean a shakeout in the chip industry as companies unable to bear the huge costs of research leave the field to rivals with deeper pockets.

40.   Prices will fall however, said Jim Feldhan, president of Arizona-based Semico Research Corp., which tracks the chip industry for IDC.