Semiconductor: Remain Cautious, But Open to Opportunity
Summary
This change has serious implications when one considers that the US consumer is a key driver for both the US and global economies, accounting for over 70% and 17% of the GDPs, respectively, the largest of any single group for both economic categories.All of which leave people with mixed signs for the future.As expected, the entire industry from semiconductors to PCs had to deal with a surplus in inventory at a time when demand was falling.This change has serious implications when one considers that the US consumer is a key driver for both the US and global economies, accounting for over 70% and 17% of the GDPs, respectively, the largest of any single group for both economic categories.Factory utilization rates throughout the entire high-tech industry remain at very low levels and demand recovery is likely to remain slow because many of the factors, such as rising unemployment, consumer and business credit defaults, will take several quarters to a year to work through the entire economic system.While there are many signs that continue to point to a tough road for the remainder of 2009, it doesnt mean that it should be written off the year as many have suggested.As a result, the best advice is to remain cautious and not anticipate any dramatic changes in overall demand.More detail on Semiconductor Forecasts can be found on Electronics.ca Publications web site.