Growth Forecast of 2008 Global IC Market Cut to 3.5% : iSuppli

Written by Writer on Thursday, October 16th, 2008

Growth Forecast of 2008 Global IC Market Cut to 3.5% : iSuppli

Taipei, Oct. 16, 2008 (CENS)–iSuppli, a market research organization tracking IC industry, recently cut its 2008 growth forecast for the global IC market to 3.5% from originally projected 4%, marking another downbeat forecast by a market research organization.

The market researcher made the revision in anticipation that the global economic meltdown will seriously compromise the chip market. Its revised forecast is the worst among industry watchers, including Taiwan Semiconductor Manufacturing Co. (TSMC) Chief Executive Officer (CEO) Rick Tsai, who estimates the 2008 market to grow 4% even after a revision.

Gartner Group cut its growth forecast to 4.2% from 4.6%, lowering the market revenue to US$285 billion from US$287 billion. For 2009, the institution`s opinion is that the revenue will likely total US$308 billion, compared with its previous forecast of US$309 billion.

SEMI reduced its 2008 forecast to somewhere between a 5% increase and a 10% decline, compared with its original forecast of a 20% increase. iSuppli Vice President Dale Ford felt that world demand for electronics equipment and semiconductors will suffer a blow when businesses cannot access financing in the wake of the global financial crisis. He is even more bearish about the DRAM market than about other chips.

Market analysts, pessimistic about market future of the IC industry, have cut forecasts on capacity-utilization rate at TSMC, the world`s No.1 silicon-foundry supplier, to less than 80% this quarter. Last quarter, the company`s production ran at 100% capacity, making it the most profitable foundry supplier. - (by Ken Liu)