What's Happening in High-Tech Supply Chains
Staff -- Purchasing, 10/21/2004 2:00:00 AM
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Semiconductor revenue increased, but at a slow rate of 1.1% in August from July to $18.2 billion. Still, according to the Semiconductor Industry Association, chip sales in August were up 34.2% from August of 2003. The SIA says that chip manufacturers reacted to rising inventories in the second quarter by starting fewer wafers. High inventories depress prices and result in less revenue for chipmakers.
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Keep a close eye on capital spending by semiconductor companies. Many chip companies may have cut back after chip sales slowed in the second and third quarters. If chip companies reduce capital spending it could mean less supply in 2005, which might mean higher prices. Capital spending for the chip industry was expected to rise 51% in 2004 to $45.1 billion according to market researcher IC Insights.
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Fuel cell-powered vehicles might not grow as rapidly as originally predicted, says ABI Research. But, development of fuel cell technology isn't the problem. The primary hurdle is lack of a hydrogen refueling network, researchers say. Fuel cell vehicles run on the conversion of hydrogen and oxygen into electricity, which powers the car's motor and produces only water vapor and heat as byproducts.
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Web browser-based terminals are gaining popularity, according to researcher Venture Development Corp., which forecasts market sales growth of 15.6% this year to $12.8 million. The Web browser-based industrial OI (operator interface) terminals use existing networks so they can act as pagers, personal digital assistants, computers or e-mail clients based on triggered times or events.
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Experts says worldwide sales of semiconductors will slide this autumn and winter, labeling as unsustainable the 34.2% growth through August reported by the Semiconductor Industry Association. Hwang Chang-Gyu, chief of Samsung Electronics' chip business, says a 20% growth rate is expected this year because the slower second-half growth will highlight chip business next year as well.
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Toyota Motor plans to increase allocation of its Prius midsize sedan in the U.S. by 100,000 in 2005. The company now expects the gas-electric hybrid vehicle to be one of its top-selling passenger cars. There have been two production increases for the Prius since it debuted in October 2003.
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