Scottsdale, Arizona–IC Insights, Inc., a market research firm, is predicting that the start of the sixth cyclical slowdown to hit the IC industry since 1970 will occur in 2001. The company has also reduced its 2001 IC market and capital spending growth forecasts to under 10%–compared to capital spending growth of 79% this year.
Over the past 30 years, the IC industry has encountered six boom/bust cycles. The downturn portion is usually triggered by global economic recession, IC industry overcapacity, or IC inventory corrections. In 2001, IC Insights believes that the industry will be affected by all three “triggers.”
The IC market slowdown may be a short-lived one, however, with IC Insights predicting modest growth through 2001 and 2002, increasing by 20% or more beginning in 2003.