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VLSI Research forecasts 'pressure points' in '07

Posted: 11 Jan 2007     Print Version  Bookmark and Share

Keywords:IC  equipment  semiconductor  VLSI Research  Mark LaPedus 

In a mixed forecast, VLSI Research Inc. predicts that IC revenues will increase 5.2 per cent in 2007, while the equipment market will grow at 4.8 per cent this year.

''Conditions are pointing to another positive year, but there are pressure points to watch for: equipment order growth is slowing, die banks are still growing, and VLSI's Chip Price Performance Index, while still positive, is pointing to a pricing environment that is deteriorating fast,'' according to the research firm.

At the macroeconomics level, U.S. economic indicators remain mixed. ''Manufacturing and housing are weak and the growth in the money supply has been flat all year,'' according to VLSI. ''On a favourable note, inflation fears are easing, which should keep the Fed from raising interest rates.''

The semiconductor industry ended 2006 on a high note. Worldwide sales of semiconductor and related equipment soared to Rs.2,76,453 crore ($61 billion), an increase of 19 per cent from 2005. At the same time, sales of integrated circuits reached Rs.947.19 crore ($209 billion), 8.5 per cent above the 2005 level.

Other IC forecasters see a cloudy outlook in 2007.

- Mark LaPedus
EE Times

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