Economic crisis of 2008 chip market down 2%

ISuppli has been paying close attention to the current global economic crisis affect the semiconductor industry. Although most of the discussion surrounding the 2009 market growth forecast, iSuppli concluded that the chip industry in 2008 by the economic crisis has seriously affected.

Based on 121 leading semiconductor suppliers in the third quarter actual results, and MAX309CSE datasheet and major performance objectives under the big chip makers come to the fourth quarter forecast, iSuppli predicts that semiconductor revenue in 2008 will decline 2%. iSupplis previous forecast in September 2008, an increase of 3.5%.

Is worth noting that the slowdown in the semiconductor industry actually began in the third quarter, while the financial crisis began in October around the world. iSuppli semiconductor company previously forecast third-quarter revenue growth of 7.9% over the second quarter. However, iSuppli estimates of third quarter revenues actually only 2.5% over the second quarter, more than the same period last year dropped by 2.9%.

Feeling weak

ISuppli company also noted that third-quarter growth rate was significantly lower than the World Semiconductor Trade Statistics (WSTS) organization earlier this month reported third-quarter growth rate. Market for all semiconductor suppliers, regardless of size, growth rate of the third quarter are negative, some negative much more, some less negative. However, the sharpest decline in memory suppliers. iSuppli expects this negative growth momentum will continue into the fourth quarter, when the overall market than expected third quarter of 2008 fell 8.8% over the fourth quarter of 2007 fell 10.9%.

Sales expected to decline in memory, based primarily on the major semiconductor suppliers on its fourth quarter results forecast. However, many vendors continue to cut its fourth-quarter goals, but also lowered the frequency and MAX309CSE price and faster. This seems to imply the possibility of the fourth quarter of the market decline significantly, and MAX309CSE suppliers and may lead to the decline in full year 2008 increased.

Horror stories

With semiconductor suppliers, device OEM manufacturers and contract manufacturers discussed, these concerns and loss makers revealed. As consumer and business confidence fell sharply in late summer, to cancel the order phenomenon also began to increase, and in many cases, evolved into a slowdown in orders for orders total stagnation. The face of increasingly bad economic news, the entire supply chain participants have become extremely cautious.

Even before the financial crisis erupted in October, has been a sharp slowdown in the semiconductor industry. The mentality of many industry vendors have become the current state of mind to survive, cost control and save the cash consideration has become the main factor to influence decisions. Very weak consumer confidence clearly indicates that the fourth quarter of the semiconductor industry will face a very difficult situation.

ISuppli analysis of the major electronics manufacturers, the companys financial reports and actions, will be released in mid-week Semiconductor Forecast Update. However, it is obvious that the semiconductor industry has been in decline, the remaining problem is that in 2009 or even 2010, this declining trend will be developed and to what extent and for how long.

ISuppli Corporation will be issued to customers next weeks quarterly market share in its full report, including the fourth quarter and full year 2008 preliminary estimates.

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