Double-digit Q-on-Q global chip sales growth expected

Semiconductor market research group Future Horizons is standing by its prediction of 6 per cent growth for global chip sales this year, following what it says were excellent figures for July revenues.

Earlier this year Future Horizons revised downwards to 6 to 7 per cent its estimated growth for global chip sales for 2007, to Rs.897,952.04 crore ($222 billion), having forecast 11 per cent growth in January and reiterated that estimate in May.

"Right on cue, July's results were a welcome relief following the disastrous first-half year performance, with month-on-month IC revenue growth up 12 per cent in value and 11 per cent in units," said Malcolm Penn, chairman and CEO of the market research group. "Year-on-year, July's sales were up 14.4 per cent on the same period last year. Even the monthly ASP decline was only 0.8 per cent, remarkably low for the first month of a new quarter," said Penn.

With the quarter off to a flying start, Penn said double-digit quarter-on-quarter growth is quite probable, followed by a seasonal slowdown in Q4 2007. This, he adds is "exactly in line with our recent forecast adjustment. 2007 growth in the range of 5-6 per cent is still a probability."

"We always said the market would rebound strongly in Q3, although the first half-year sales tested our nerves to the limit. The big question now is, "how strong will the third quarter recovery be?"

- John Walko
EE Times Europe