The inventory cupboard is pretty much bare. The lights went out in September last year, and the response was a lock down on orders.
Now says Future Horizons, the leading semiconductor market research company, what we are now seeing is a correction to that drought. So according to the company's latest monthly report April data shows a 7.6 per cent decline in sales against the previous month, but after adjusting for the five week long March, it translates into a whopping 15.5 per cent growth.
Malcolm Penn (pictured), the chief executive officer of Future Horizons thinks the counter balancing of inventory replenishment will continue through to the third quarter of this year.
After that the industry is relying on underlying end market demand to fuel growth.
Penn is not a man to dabble in the green shoots theories, preferring to look at the numbers.
So he has revised his forecast for the second quarter of this year and now predicts growth in the four to five per cent range against a two per cent decline presented in January. And if that proves correct Penn will forecast a 2009 market decline of 21.3 per cent, replacing his January forecast of a 28 per cent downturn.
If you want to hear the full story Penn will be hosting the Future Horizons Mid-Term Update Seminar in London on July 21.
For more details got to www.futurehorizons.com
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