Abstract
Worldwide revenue for semiconductors dropped 3 percent in 2008, falling from
$255.6 billion in 2007 to $248.6 billion in 2008. Semiconductor players that
fared better than the overall industry were few and far between and gains were
mostly due to acquisitions or strong uptake in orders by smaller firms gaining
traction.
In 2009, Databeans expects the market to contract significantly due to a very
fast reaction to sour market conditions in the fourth quarter of 2008. These
three months resulted in a significant drop which was as steep as it was deep.
These conditions have continued into the first quarter of 2009, although there
are some product markets that are seeing some improvement, particularly the
wireless segment in the Asia Pacific region.
Inventories are clear at the beginning of the second quarter, so all new
orders coming in will be for the current quarter as little inventory build
will take place until the overall economy stabilizes. Because of this,
Databeans predicts a sharp recovery in 2012 with growth for overall
semiconductor revenue at a positive 17 percent gain causing a “V” shaped
recovery. While there are several predictions to when the recession will end,
our projection is that the economy will be in a state of pulling out of the
recession during the latter half of the year and will continue into the first
half of 2010.
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