Semico Research predicts shrinking semiconductor market

Semico Research predicts shrinking semiconductor market
Tom Foremski
The chip industry received more bad news yesterday with a US market research firm predicting that the market will shrink this year by one percent.
Semico Research blames massive overcapacity, price competition and a continuing slide in memory chip prices for a drop in revenues compared with last year.
“Pricing pressure has now overflowed into many other product categories like programmable logic, standard cells, microprocessors, microcontrollers as well as microperipherals,” said Semico president Jim Feldhan.
In terms of unit growth, Semico has changed a forecast made late last year and now expects just one percent global growth compared with its previous 2.1 percent growth estimate. But there is some good news for Europe, which Semico says will be the strongest market this year in terms of growth with a 2.5 percent increase.

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