Chip Stocks That Could Catch Fire in '07

It's a tough time to like chipmakers.

Inventory and demand woes will creep into the new year like a nasty hangover, leaving the semiconductor industry in a slump.

But technology doesn't stop for downturns. And in 2007, a slew of high-tech innovations are set to debut, heralding good times for the chip companies -- and investors -- at the forefront of the new trends.

To help spot the trends with potential, TheStreet.com examines which new technologies will blossom in the coming year and which ones may wither on the vine.

With the backing of two industry giants, mobile WiMax seems poised to catch fire in 2007, bringing wireless broadband to the masses. In the first half of the year, Intel(INTC Quote) will integrate WiMax technology into its next version of Centrino -- the chipset that made Wi-Fi ubiquitous in laptop PCs.

When Intel launched the initial Centrino in 2003, however, consumers could connect their laptops to the Wi-Fi hotspots that were already prevalent at the time. By contrast, the $3 billion nationwide WiMax network that Sprint Nextel(S Quote) is building will be available only in a few trial cities by the end of 2007.

And because WiMax -- unlike Wi-Fi -- is designed to be used primarily in the licensed spectrum, there won't be many other ways for consumers to experience WiMax in 2007.