Intel, AMD, Samsung and a host of other chip makers have been affected as the semiconductor market continues to be affected by the economic downturn, according to a new report by the IDC. The analyst firm expects a further revenue decline of 22 percent in 2009, due to a combination of declines in unit shipments, low utilization rates and price erosion.
, Samsung and other chip providers have been hit by the
economic downturn in a hard way, as research firm IDC
expects a 22 percent decline in global semiconductor sales this year.
to IDC, the semiconductor market was one of
the first affected by the recession that began in late 2007. In 2008, revenues
from semiconductors declined 2 percent.
trend will only accelerate in 2009, fueled by massive declines in the key areas
of unit shipments, low utilization rates and price erosion.
semiconductor industry downturn will be prolonged by macroeconomic uncertainty
this year," Mario Morales, vice president for Semiconductor Research at IDC,
said in a statement. "With demand visibility low, utilization rates at
frozen levels and supplier inventories growing because of deteriorating demand
targets, IDC does not expect year-over-year
growth for semiconductor revenues until the second quarter of 2010."
sees connectivity, wireless broadband, multicore processors and NAND as
technologies that suppliers will invest in even during a downtown; however,
they also projected capital spending by players in the semiconductor market to
decline by 45 percent in 2009.
this week, Gartner released its own analysis of the semiconductor industry,
predicting record revenue declines in 2009 of 24.1 percent versus 2008 revenue.
December 2008, Gartner predicted the 2009 fall-off would be around 16 percent,
but revised its estimates after taking into account "worsened" market
conditions. Like IDC, the firm predicts that
the industry will return to positive growth in 2010.
believe that the financial crisis has reset the semiconductor market," Bryan
Lewis, research vice president at Gartner, said in a statement. "After the 2001
recession, in which semiconductor sales plummeted by a record 32.5 percent,
semiconductor sales took about four years to get back to 2000 levels."