Wednesday, April 8, 2009

No one can predict the recovery

Though everyone can put a number on how much the semiconductor industry is down, even Intel Corp, www.intel.com the world’s largest chipmaker, and cannot predict exactly when the industry will revive.
Last week the Semiconductor Industry Association www.sia-online.org reported that worldwide sales of semiconductors were $14.5 billion in February, a decline of 30.4% compared to February 2008 sales of $20.3 billion. And in a month on month comparison, sales declined 7.6% from January when sales were at $15.3 billion, SIA said.
“Demand for semiconductors is likely to continue well below 2008 levels for the next few quarters, with a gradual recovery to follow as the global economy recovers,” SIA president George Scalise said in the report.
This week the WSTS (World Semiconductor Trade Statistics) organization www.wsts.org reported that the global market for semiconductors stood at $13.47 billion in February 2009, down 27.2% from the $18.5 billion reported in February of 2008 in a somewhat higher number comparison. The WSTS numbers are based on actual results, and may hint at a slight improvement in the industry.
This week when asked to predict semiconductor recovery, Intel’s Chairman Craig Barrett responded that stimulus packages currently being rolled out by governments around the world would start seeing responses in six to 18 months, according to a Reuters’ report.
“So you pick your time that you want to recovery to occur in that six to 18-month period, and your guess is as good as anyone’s,” Barrett said while visiting Beijing.

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