Chip market | MySemiconDaily

Photo Credit: CDRinfIn an illustration of the massive power it wields in the electronics supply chain, Apple’s migration of the production of key semiconductors from Samsung to pure-play foundries will single-handedly boost the growth of the chip contract manufacturing market this year.

By the end of the year, pure-play semiconductor foundry market revenue is forecast to rise 21 percent compared to 2012, according to an IHS report. In contrast, takings for the overall semiconductor industry will expand by a more staid 5 percent.

The pure-play foundry industry is already on track to achieve such growth this year, with revenue amounting to $8.2 billion in the first quarter, up 4 percent from $7.9 billion in the fourth quarter last year. In comparison, the overall semiconductor market was down by 5 percent during the same period.

The foundry segment is also believed to have outperformed the rest of the industry in the second quarter when final figures are released, and then go on to perform strongly for the second half. Read More

A semiconductor industry downturn that began over the summer will be short lived, reaching its bottom in February 2012, according to a market analyst.

Speaking at Dongbu HiTek Co. Ltd.’s Analog Semiconductor Leaders Forum here last week, Jim Feldhan, president of Semico Research Corp., said the semiconductor industry supply chain pulled back and started burning inventory amid deteriorating macroeconomic conditions and declining consumer spending.

Feldhan said nervous OEMs are likely to continue burning inventory through the end of 2011 and into 2012. He predicted that the market would overreact to the slowdown in business, projecting that overall industry capacity utilization would slip to under 80 percent by the end of the year, down from more than 90 percent at the beginning of 2011.

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Tag Archives: Chip market

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