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
Nov 16, 2018
If you aren'€™t from the packaging world, then chances are likely you might think '€œpacking'€ refers to objects being placed in to a box instead of packaging integrated circuits (IC'€™s) on a substrate. Packaging has advanced since it began, and as with many areas i...
Nov 14, 2018
  People of a certain age, who mindfully lived through the early microcomputer revolution during the first half of the 1970s, know about Bill Godbout. He was that guy who sent out crudely photocopied parts catalogs for all kinds of electronic components, sold from a Quon...
Nov 13, 2018
Podcast Interview with the authors of The Hitchhikers Guide to PCB Design eBook by Mike Beutow with PCB Chat....