editor's blog
Subscribe Now

We are doomed

I’ve written before on Future Horizon’s regular reviews of the state of the semiconductor industry. (The four horsemen). Malcolm Penn, the firm’s founder and CEO, is normally fairly up-beat, but yesterday he was wearing black. Given the state of the world economy he sees the market for semiconductor sales as essentially flat in dollars.  Given that unit shipments are maintaining their 29 years of 10% annual growth, the average selling price (ASP) is falling, again another long term trend. The result is that chip companies are going to feel a profitability squeeze, with the probable result of more take-overs. The big concern is what will happen when the world’s economy improves. Classically chip demand increases rapidly in an improving economy. There is very little slack in fabrication capacity and very little current investment in new capacity, prices will rise dramatically (as will profits!) but some companies will have orders for products, but nowhere to build them.

We are still on the roller coaster folks.

Leave a Reply

featured blogs
Sep 24, 2018
One of the biggest events in the FPGA/SoC ecosystem is the annual Xilinx Developers Forum (XDF). XDF connects software developers and system designers to the deep expertise of Xilinx engineers, partners, and industry leaders. XDF takes place in three locations this year.  Sa...
Sep 24, 2018
For the second year, the Electronic Design Process Symposium (EDPS) took place in Milpitas, having been at Monterey for many years. This was apparently the 25th year EDPS has run. I find EDPS to be a fascinating conference, and I think it is a shame that more people don'...
Sep 21, 2018
  FPGA luminary David Laws has just published a well-researched blog on the Computer History Museum'€™s Web site titled '€œWho invented the Microprocessor?'€ If you'€™re wildly waving your raised hand right now, going '€œOoo, Ooo, Ooo, Call on me!'€ to get ...
Sep 20, 2018
Last week, NVIDIA announced the release of the Jetson Xavier developer kit. The Jetson Xavier, which was developed in OrCAD, is designed to help developers prototype with robots, drones, and other......