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Analyst predicts IC slowdown in 2H

Posted: 07 Feb 2007 ?? ?Print Version ?Bookmark and Share

Keywords:IC? revenue? Advanced Forecasting? semiconductor? Mike Clendenin?

Led by higher consumption in Asia, global revenues and unit sales of ICs grew by 8.7 percent and 18.1 percent, respectively, in 2006. But end-demand is expected to peak in the second half, dampening growth to single digits in 2007, according to market researcher Advanced Forecasting.

That is a contrarian view to recent predictions. Last week, the Semiconductor Industry Association forecast that the semiconductor market will grow 10 percent to $273.8 billion in 2007. The often bullish Future Horizons said the market will grow by 12 percent in 2007 and by a further 16 percent in 2008.

Terra Securities ASA fell more in line with a call for single digit growth, predicting a 7 percent increase, but said momentum will pick up in the second half, not slow down as Advanced Forecasting believes.

The firm said global sales in 2006 were led by a rise in Asian consumption (excluding Japan), which grew by 12.4 percent to hit $100.4 billion, or 48 percent of total worldwide IC revenues.

Sales in the US, the second largest consumer, grew 10 percent to $41 billion. Sales in Japan grew 4.8 percent to 34.7 billion and sales in Europe grew 1.1 percent to 33.5 billion.

- Richard Goering
EE Times

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