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Semiconductor demand softening, inventories rising

Posted: 01 Oct 2010 ?? ?Print Version ?Bookmark and Share

Keywords:IC forecast? semiconductor market?

Semiconductor market watcher iSuppli reduced its 2010 outlook to 32 percent due to slowdown in global demand for consumer electronics and accumulating semiconductor inventories in the supply chain. The relatively bright areas of the market are DRAM, voltage regulators, LEDs, programmable logic devices (PLDs) and data converters.

Semiconductor market watcher iSuppli reduced its 2010 outlook to 32 percent due to slowdown in global demand for consumer electronics and accumulating semiconductor inventories in the supply chain. The firm expects Q4 2010 revenue to decline by 0.3 percent compared to Q3.

 Source:iSuppli

Having predicted the market would show 31 percent growth in May the company joined with most other forecasters in raising its prediction to 35 percent in August. However, iSuppli expects the chip business to experience a soft landing in 2011 with semiconductor revenue in 2011 set to rise by 5.1 percent.

"There has been a significant slowdown in the second half in consumer demand for some electronic devices, including PCs," noted Dale Ford, senior vice president at iSuppli, in a statement. "Meanwhile, inventories have been building throughout the semiconductor supply chain. These factors will conspire to cause a small sequential decline in semiconductor revenue in the fourth quarter."

The 32 percent growth figure implies global semiconductor sales will amount to $302 billion in 2010, up from $228 billion in 2009, still a remarkably strong growth year but created partly by comparison with difficult 2009, which was impacted in its first half by the global economic crisis.


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