It seems every semiconductor market forecaster and their aunt have had their two pennorth or cents worth on the outlook for 2009. So it would be uncharitable not to let In-Stat, distantly related to this site through sharing a parent company, not have it's say.
If you are expecting a company based in Arizona where the sun seems to shine permanently to bring a cheerier forecast forget it. Their story headline is Down Economy=Bloody 2009 Semiconductor Market.
Just in case that isn't plain enough, the company says the global recession will wreak havoc on the semiconductor market in 2009. In-Stat is predicting a decline of near enough 20 per cent this year to $199.2bn. It adds that it can't see the industry regaining 2007 levels until 2012.
Assuming you are not perched on the window ledge by now, here's a little more detail. The company says recent research show that while the recovery will begin in the second half of the year, revenue growth in 2010 will be what In-Stat decribes as a "modest" 11.8 per cent. I reckon most semiconductor companies would take that now.
The digital signal processor market, vulnerable to the slowdown on mobile phone sales, has taken a hit, declining in 2008 by 14.9 per cent to $6.6bn, the lowest level of revenues since 2003.
"Declining confidence resulting from recent shocks and increased uncertainty about the future will lead to more conservative spending even after liquidity improves and the economic recovery is well under way," said Jim McGregor, In-Stat analyst. "Restoring business and consumer confidence and overcoming excess capacity will be key to recovery and subsequent growth."
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