IC Insights slashes 2011 semiconductor market forecast to 5%
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IC Insights has lowered its 2011 growth forecast for the worldwide semiconductor industry from 10% to 5%. The global IC market is also projected to grow at a slower rate of 4%, compared to the 10% previously anticipated.
The market research firm said the weak performance of the worldwide economy in the first half of this year was the primary cause for the downgrade.
"The unexpected economic headwinds the worldwide economy faced in the first half of 2011 caused quarterly worldwide economic growth to slow significantly compared to 2010, and in turn served to slow worldwide electronics and semiconductor industry market growth," said the company.
It added that while any of these negative events by themselves may not have had a serious impact, combined, they served to noticeably slow the worldwide economy in the first half of this year.
Although worldwide growth in the second half of 2011 is not forecast to revert back to the levels registered in the first three quarters of 2010, IC Insights predicts it will show noticeable improvement over the first half of 2011. The optoelectronics, sensors and discretes market is expected to remain at 10% growth.
