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Chip Makers Hit By Economic Downturn, Forecast Reduced

By - Source: Tom's Hardware US | B 13 comments

Semiconductor revenues are now expected to climb by just 1.2 percent this year and remain essentially flat over 2010, according to a new report released by IHS.

The number is down from a previous 2.9 percent estimate.

"Although the forecast of 1.2 percent revenue growth in 2011 is just barely positive, an expansion of any magnitude is significant from the standpoint of market psychology," said Dale Ford, senior vice president, electronics market intelligence for IHS. "Given the worsening economic environment and growing pessimism in the electronics supply chain, many market forecasters had projected third-quarter revenues would decline, and pull down the results for the full year of 2011. Even the prospect of marginal growth casts a much more optimistic light on the market performance for the year."

IHS noted that the global semiconductor market gained in Q3 despite "major economic headwinds," which may have saved the industry from overall negative growth for the current year. IHS estimates that Q3 chip sales increased by about 3.5 percent to $78.7 billion year over year. For Q4, IHS expects a 2.0 percent decline to $77.1 billion. 2011 sales are expected to come in at $308.5 billion, up from $304.7 billion in 2010.

According to the market research firm, "many major semiconductor suppliers are projecting fourth-quarter revenue declines that average in the high single digits, "but there are some notable exceptions that have indicated solid growth," which include Intel, Samsung, Renesas, Qualcomm and AMD.

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  • 4 Hide
    dxwarlock , November 18, 2011 6:46 PM
    Am i reading it wrong? or is this an old article..its speaking of predictions of remaining flat for 2010 and forecasting overall growth for 2011, the year we are almost done with..
  • 2 Hide
    chomlee , November 18, 2011 6:51 PM
    I think you mean "flat over 2012".
  • 3 Hide
    pwnorbpwnd , November 18, 2011 6:58 PM
    Umm.. Flat over 2012 but 2011 is down from 2011? Am I tripping out?
  • 6 Hide
    pale paladin , November 18, 2011 7:02 PM
    I think they have non english speaking Ewoks doing the editing for this website now. Get your crap together Tomshardware.
  • 1 Hide
    Unolocogringo , November 18, 2011 7:58 PM
    The editor was busy taking pictures with the models!!!!!
  • 0 Hide
    fazers_on_stun , November 18, 2011 8:08 PM
    ^ What models?? All I see is some CPU. I wanna see some booth babes! :D 
  • 0 Hide
    cookoy , November 18, 2011 8:13 PM
    They're revising the 2011 forecasted annual growth down to 1.2% over 2010 instead of previous 2.9% estimate due to the economic downturn.
  • 2 Hide
    yzfr1guy , November 18, 2011 8:18 PM
    I truly can't believe the lack of quality publishing at Toms, such a shame. If there is a content reviewer they should be fired Donald Trump style!

    I've been a Toms follower since it's birth and the quality has gone to poo with it's content and it's over use of in your face advertising. But like most companies, the owners only give a damn about themselves putting greed for money as priority number one. I'm guessing the associates putting the content on here are low wage or even interns working for nothing....
  • 1 Hide
    memadmax , November 18, 2011 9:38 PM
    Who the hell wrote this turd?
  • 0 Hide
    Haserath , November 18, 2011 10:39 PM
    The article means the revenue in 2011 is going to be nearly the same as 2010...
  • 0 Hide
    stoogie , November 19, 2011 7:10 AM
    Tomshardware editors are on the Meth again... Sigh!
  • -2 Hide
    eddieroolz , November 19, 2011 9:24 AM
    The flat over 2010 refers to the increase over 2010 levels.

    Perhaps one should try reading the article with care and analytical mind.
  • 0 Hide
    valu3hunt3r , November 22, 2011 2:20 AM
    yzfr1guyI truly can't believe the lack of quality publishing at Toms, such a shame. If there is a content reviewer they should be fired Donald Trump style!I've been a Toms follower since it's birth and the quality has gone to poo with it's content and it's over use of in your face advertising. But like most companies, the owners only give a damn about themselves putting greed for money as priority number one. I'm guessing the associates putting the content on here are low wage or even interns working for nothing....


    Ad Block Plus takes care of the ads :) 

    As to the quality of this article, I don't know of any browser plugins that can fix that.