Semiconductor revenue growth slows
Chip cautious about placing new orders
By Jim Carbone -- Purchasing, 10/1/2008 5:12:00 PM
Global revenue for integrated circuits will be less than expected in 2008 despite an increase in unit shipments, according to researcher IC Insights. The researcher has revised its forecast for the IC industry to $244.3 billion, down from it previous forecast of $250.2 billion due in part to the uncertain economic environment. However, unit shipments will rise 9% to 170.5 billion; earlier, IC Insights forecast unit shipments would rise 8%.
Growth won’t be as strong because of price erosion for NAND flash memory and DRAM. The NAND flash memory market will drop 4% from $14.6 billion to $14 billion, while the DRAM market will drop from $32.4 billion to $28 billion, according to IC Insights revised forecast.
Chip buyers are being very cautious with orders and plan to enter 2009 with conservative inventory levels because of the economic woes in the U.S. and elsewhere. The researcher believes that the industry will grow in 2009 and beyond assuming the $700 billion U.S. economic bailout package passes in some form. The chip industry should grow 8% in 2009 and 11% in 2001.
See also: Memory IC price erosion weakens semiconductor industry's growth
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