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Semico upgrades 2007 IC forecast; expects 7% growth

Posted: 08 Sep 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Semico Research? chip forecast? semicon market? ICs? chips?

Market research firm Semico Research Corp. raised its IC forecast for 2007, forecasting the semiconductor market to grow by 7 percent in 2007. Semico also reiterated its 11-percent growth forecast for 2006.

Last month, Semico downgraded its outlook and projected that the IC market would grow only 3.4 percent in 2007. However, the market research firm projected early this year that the IC market would grow by 17 percent in 2006 and 20 percent in 2007.

In a brief interview, Jim Feldhan, president of Semico, said that the new IC forecast from the firm reflects stronger-than-expected growth for cellular phones and MP3 players. On the whole, however, there are still some worrisome signs for 2007. Average selling prices for chips are projected to decline, Feldhan said.

Fab-capacity utilization is projected to fall as a slew of new fabs are coming online. The memory market is projected to be mixed next year, he said. Recently, Feldhan outlined his concerns about the market in 2007.

- Mark LaPedus
EE Times

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