IHS: Semiconductor market revenue decline now expected for 2012
IHS has downgraded its 2012 global semiconductor market chip revenue forecast due to weakening economic conditions causing reduced demand for electronic components.
Revenue is now expected to decline slightly for the year, contracting by 0.1%. This will mark the first annual decline for the global semiconductor industry since 2009.
"The expected decline in 2012 represents a major event for the global semiconductor market," said Dale Ford, senior director at IHS. "Throughout all of 2011, even though electronics markets were very weak, IHS never projected revenue to decline for the entire year. However, the disappointing results in the second quarter and weak third quarter expectations driven by poor economic conditions are expected to cause the semiconductor market to retreat this year."
At this point, IHS is still forecasting a strong growth rebound of more than 9% in 2013, based on expectations of improving economic conditions.
