Chips Continue To Fall For Semiconductor Industry

from the chip-up dept

Tue, Jul 17th 2007 1:28pm — Joseph Weisenthal

Last month, The Semiconductor Industry Association put out an ominous forecast for the chip sector, slashing growth estimates from 10% to 1.8% over the coming year. Not surprisingly, the carnage in the industry seems to be spreading. An industry group for the makers of semiconductor equipment says sales will only rise by 1% this year, following growth of 23% last year, and a turnaround doesn't look likely over the next few years, as gains are expected to be anemic. This industry is cyclical, so many of these companies have seen downturns like this in the past, but taken with other bits of evidence, a broader downturn may be in the offing.

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Filed Under: semiconductors

4 Comments

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Jon is Stupid, 17 Jul 2007 @ 1:55pm

Am I the First???
just think, had Transmeta joined forces with AMD, it could have been a different headline up there...

1st???
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- No, Jon is a Genius, 17 Jul 2007 @ 1:57pm
  
  Re: Am I the First???
  So, we can infer that non-Apple Intel sales are down substantially, and Apple's market share rise has saved the day!!!!!
  
  being first isn't all it's cracked up to be, but being second really sux
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Trent, 17 Jul 2007 @ 2:50pm

As with any cyclical industry...
It's all about supply and demand. For the last year they have been putting in too much supply (23% growth in equipment sales)to meet the 10% demand growth. Since there is too much supply, prices fall and what used to be 10% is now 1.8%.
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Shalkar, 17 Jul 2007 @ 8:14pm

Yes indeed!
Other than what Trent said, I'd have to say it's also because the economy itself is, speaking generally, on the down. Computers are moving more and more from "want" to "need", but it's still technically a "want" item. The majority are happy to pay for their basics and then, if they work full time and are barely ever home to enjoy it, they have some cable television on top of that.

Of course though, my only experience is being around and talking to the people in my state: West Virginia.

My state sucks. Big time. Hopefully I'll be out soon! ;)
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