Don’t ‘overshoot’ chip recovery, warns analyst

EW Daily News 13/04/2004 16:29:33 – Don’t ‘overshoot’ chip recovery, warns analyst
Don’t ‘overshoot’ chip recovery, warns analyst Melanie Reynolds
Demand for semiconductors will outstrip supply well into 2005, according to analyst Future Horizons.
But the UK-based market watcher warned suppliers against overshooting the recovery which would trigger another downturn.
The upswing should outlive previous positive periods, said Malcolm Penn, Future’s CEO. But if the industry over invests in production and creates flabby inventory levels as it has traditionally done, another downturn will begin to bite late in 2005 or early 2006.
The global market for ICs was up 25.6 per cent over in the year to January 2004.

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