Analysts predict drop in 2008 global chip sales
Fourth-quarter revenue expected to plummet 11% as economy batters semiconductor market
Computerworld - Two industry watchers this week revised their estimates of worldwide semiconductor revenue this year, with one even predicting a year-over-year decline.
ISuppli Corp. today said it is projecting that 2008 semiconductor sales will decline by 2% to $266.6 billion this year from about $272 billion in 2007. Just last month, iSuppli had predicted that 2008 semiconductor sales would grow by 3.5% over last year.
And yesterday, World Semiconductor Trade Statistics< issued a report predicting that the global semiconductor market will grow by 2.5% and hit $261.9 billion in 2008. That's down from the 3.2% growth the trade association reported last year.
"The first evidence that the semiconductor industry was entering a recession arrived in the third quarter, before the financial crisis began sweeping the world in October," said Dale Ford, a senior vice president at iSuppli. "[We] previously had predicted that the third quarter would generate 7.9% growth in semiconductor revenue compared to the second quarter. However, actual growth in the third quarter came in at a very anemic 2.5% quarter-to-quarter rise. Year-over-year revenue in the third quarter was down by 2.9%."
Ford noted in his report that memory suppliers are taking the biggest hit.
ISuppli is predicting that the negative momentum will continue into the fourth quarter, with the overall market expected to drop by 10.9% compared with the same quarter last year.
Last month, analysts at iSuppli lowered their forecast for semiconductor growth from 2007 to 2008 from 4% to 3.5%. The earlier projection was made in August, but analysts said they were forced to downgrade it when the economy began forcing many companies to scale back IT spending plans.
And earlier this month, market research firm IDC reported that the worldwide microprocessor market actually hit a new shipment record in the third quarter, largely boosted by Intel Corp.'s new Atom processor. The chips, designed for the increasingly popular netbook computers, boosted the market despite the turbulent economic times, growing by 8.3% from the second quarter to the third.
The World Semiconductor Trade Statistics group sees the worldwide semiconductor market turning around in 2010.
"[We] foresee a continuously growing demand for electronic products, such as PCs, digital consumer appliances, mobile communications and last but not least automotive electronics," said Ulrich Schaefer, the group's chairman, in a statement. "Although the present worldwide economic crisis will cause a reduction of sales in the next year, in the long run, this positive trend will however continue."
Read more about Processors in Computerworld's Processors Topic Center.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- HP HAVEn: See the big picture in Big Data HP HAVEn is the industry's first comprehensive, scalable, open, and secure platform for Big Data. Enterprises are drowning in a sea of data...
- What Datapipe customers need to know about the new PCI DSS 3.0 compliance standard This handy quick reference outlines what PCI DSS 3.0 is, who needs to be compliant and how Alert Logic solutions address the new...
- The 12 PCI DSS 3.0 requirements addressed by Peer 1 Hosting This handy quick reference outlines the 12 PCI DSS 3.0 requirements, who needs to be compliant and how Alert Logic solutions address the...
- Defense Throughout the Vulnerability Life Cycle This whitepaper provides insight into how to leverage threat and log management technologies to protect your IT assets throughout their vulnerability life cycle.
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,... All Processors White Papers | Webcasts