Future Horizons stands by bullish chip forecast

Semiconductor market research group Future Horizons is standing by its prediction of 6 percent growth for global chip sales this year, following what it says were excellent figures for July revenues.

Earlier this year Future Horizons revised downwards to 6 to 7 percent its estimated growth for global chip sales for 2007, to $222 billion, having forecast 11 percent growth in January and reiterated that estimate in May.

"Right on cue, July's results were a welcome relief following the disastrous first-half year performance, with month-on-month IC revenue growth up 12 percent in value and 11 percent in units," said Malcolm Penn, chairman and CEO of the market research group. "Year-on-year, July's sales were up 14.4 percent on the same period last year. Even the monthly ASP decline was only 0.8 percent, remarkably low for the first month of a new quarter," said Penn.

With the quarter off to a flying start, Penn said double-digit quarter-on-quarter growth is quite probable, followed by a seasonal slowdown in Q4 2007. This, he adds is "exactly in line with our recent forecast adjustment. 2007 growth in the range of 5-6 percent is still a probability."

"We always said the market would rebound strongly in Q3, although the first half-year sales tested our nerves to the limit. The big question now is, "how strong will the third quarter recovery be?"

- John Walko
EE Times Europe