Craig Barrett, head of semiconductor giant Intel, has said the long-awaited technology sector rebound is just around the corner.

Speaking at a conference in Seville, Spain, Mr Barrett said he expected conditions for technology firms to improve in early 2003, with telecommunications companies emerging from the downturn the year after that.

"I expect the crisis to end in the early part of 2003, and in the (telecommunications) sector it will take more time, perhaps at the end of 2003 or the beginning of 2004," he said.

Mr Barrett's upbeat remarks contrast with Intel's recent highly cautious outlook reports.

Although the company has weathered the technology slump better than most of its rivals, it has refrained from predicting an upturn in its public statements this year.

A horse called Nasdaq

Mr Barratt's comments are likely to reassure investors who have watched the value of their technology holdings plummet over the last two years as companies reined in spending on computers.

Last week, the Nasdaq index of technology stocks slumped to its weakest close in six years after Intel's closest rival Advanced Micro Devices warned that it would undershoot its sales targets.

And earlier this month, Germany's stock exchange operator said the Neuer Markt - often seen as Europe's answer to the Nasdaq - would close in 2003 after losing nearly all its value over the past two years.

Undaunted, Mr Barrett told the conference that he had named a horse on his Arizona ranch 'Nasdaq.'

"I have never been more optimistic on the future than I am right now, even in the middle of a recession," Mr Barrett said.

However, he warned that a sharp drop in venture capital spending, triggered by stock market weakness, could hold back the advent of new technologies.

"We are perhaps in danger of having a lack of new ideas over the next couple of years," he said.