Silicon production in decline

According to IHS, worldwide silicon shipments will total 2.47million square inches during Q4, down from 2.54m in Q3. Prior to the downshift, silicon shipments had been rising, climbing from 2.12m square inches in Q1 to 2.43m in Q2. While silicon shipments do traditionally decline towards the end of the year, IHS cites the recent slowdown in activity as the result of "missed projections", coupled with continuing economic apathy in the markets. "For silicon suppliers, production in the first half was more than what their customers ultimately needed," said IHS in a statement. "Meanwhile, chip buyers did not see the consumer sales they had hoped for, which left them with unused semiconductor stockpiles." Looking ahead, no further increases are anticipated until midway through 2014. Despite this, IHS says total silicon growth in 2013 will be in the range of 3.5% - much better than the marginal 0.8% uptick seen last year.