(September 27, 2007) EL SEGUNDO, CA— iSuppli Corp. has reduced its original revenue growth forecast for the global semiconductor industry from 6 to 3.5%, even as chip revenue is up, equipment markets are on the rise, and memory sales are improving. The research firm reportedly revised its original predictions because these stronger conditions are still insufficient to offset the impact of the first half of the year’s results.
A 13 percent sequential decline in revenue during the first six months of 2007 for memory ICs was the cause of the initial weakness, noted Gary Grandbois, principal analyst, iSuppli. He said this decline was spurred by a drop in average selling prices (ASPs), due to a glut of parts on the market.