On December 9th, Future Horizons analysts said that the overall performance of the global semiconductor industry in 2007 was sluggish, but it is expected that the situation will improve in 2008.
According to foreign media reports, global integrated circuit (IC) sales in the first half of 2007 decreased by 6% compared with the second half of 2006, and the slow recovery began in the third quarter of this year. The average growth rate in 2007 is expected to be 5% to 6%. Malcolm Payne, chief analyst at Future Horizons, said, "The beginning of this year was a disastrous start for the semiconductor industry, but fortunately, from the third quarter, the entire market is on track and the overall sales situation begins. The recovery, due to the late market market improvement, is expected to grow between 5% and 6%.
“The above increase indicates a dramatic decline in the entire semiconductor industry, but the overall decline in the market is due to structural market adjustments, not a full-scale decline in the entire industry. This difference is very important because the market will usually be soon after structural adjustment. There is a rebound, and the recovery after a full-scale recession in the industry will take longer."
In 2007, the global semiconductor industry will see single-digit growth for the third consecutive year, while the growth rates in 2003 and 2004 were 18.3% and 28%, respectively. Future Horizons said that the main reason for the low growth this year was the decline in average selling prices, as sales increased by 12% during the same period, while sales in 2006 increased by 18.1%.
Future Horizons expects the growth of the semiconductor market to return to 12% in 2008, with sales expected to increase by 10%, while average product prices will rise by 2%.
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