“The emergence of excess inventories, macroeconomic uncertainty, and slowing end-user demand casts a shadow over the outlook for 2005,” says Klaus Rinnen, vice president of Gartner’s semiconductor manufacturing and design research group. “Device production has slowed in recent months, and with it semiconductor manufacturers have readjusted their capacity ramp-up and equipment purchase plans.”

All major segments of the capital equipment market are forecast to decline in 2005, except for the automated test equipment market, which is expected to grow 3% in 2005 and then decline 30% in 2006. Gartner analysts say the industry is in a downcycle, but this period will be shorter than the prior one in 2001.

(December 28, 2004) New York, N.Y.&#8212MagnaChip Semiconductor recently announced the successful sale of US$750 million of high-yield notes in a private offering. The company plans to use the proceeds from this offering to refinance existing indebtedness, redeem existing preferred equity interests of MagnaChip Semiconductor LLC, and for general corporate purposes.