Worldwide Semiconductor Glut - 1st Half 2005
IDC, a leading tech-industry research firm, recently predicted that worldwide semiconductor revenue will fall 2 percent next year, compared with 26 percent growth this year. The reason, said the Framingham, Mass.-based firm, is simple: "production plans that outstripped real demand."
Global chip sales in 2005 will increase 4.7 percent, slowing from a 24.4 percent gain in 2004, researcher ISuppli Corp. said on Dec. 6, adding that growth in 2006 will drop to 2 percent. Demand for mobile phones and notebook PCs, which have helped boost semiconductor sales, will slump in the next two years, according to El Segundo, California-based ISuppli.
Taiwan Semiconductor said it expects to use 78 percent of its capacity in the first quarter. The industry's excess inventory of chips may be eliminated by the second half this year.
``The chip industry has gone into an adjustment period and that phase will probably see bottom sometime this summer,'' Terry Higashi, chairman of Tokyo Electron, said in a Feb. 14 interview.
A worldwide glut of computer chips used to build mobile phones and personal computers is taking a toll on earnings and sales of Japanese exporters.
See: The Tail That Wags The Dog - January 30, 2005
http://naybob.blogspot.com/2005/01/tail-that-wags-dog.html
Global chip sales in 2005 will increase 4.7 percent, slowing from a 24.4 percent gain in 2004, researcher ISuppli Corp. said on Dec. 6, adding that growth in 2006 will drop to 2 percent. Demand for mobile phones and notebook PCs, which have helped boost semiconductor sales, will slump in the next two years, according to El Segundo, California-based ISuppli.
Taiwan Semiconductor said it expects to use 78 percent of its capacity in the first quarter. The industry's excess inventory of chips may be eliminated by the second half this year.
``The chip industry has gone into an adjustment period and that phase will probably see bottom sometime this summer,'' Terry Higashi, chairman of Tokyo Electron, said in a Feb. 14 interview.
A worldwide glut of computer chips used to build mobile phones and personal computers is taking a toll on earnings and sales of Japanese exporters.
See: The Tail That Wags The Dog - January 30, 2005
http://naybob.blogspot.com/2005/01/tail-that-wags-dog.html
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