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
May 20, 2019
At the 2019 International Symposium of Physical Design, the conference honored Alberto Sangiovanni-Vincentelli with a lifetime achievement award. Alberto was one of the cofounders of SDA Systems, the... [[ Click on the title to access the full blog on the Cadence Community s...
May 17, 2019
The Design Automation Conference (DAC) is the premier conference for automated electronics design and verification technology. For 2019, DAC returns to sunny Las Vegas, Nevada at the Las Vegas Convention Center from June 2-5, 2019. We'€™ve packed each day full of exciting ...
May 17, 2019
In the days of old we looked into the “green” for guidance on how much further down into the world of miniaturization we could go. What is the green you ask? I am talking about the substrate that has served us all well for many years; the PCB. We are at a crossroa...
Jan 25, 2019
Let'€™s face it: We'€™re addicted to SRAM. It'€™s big, it'€™s power-hungry, but it'€™s fast. And no matter how much we complain about it, we still use it. Because we don'€™t have anything better in the mainstream yet. We'€™ve looked at attempts to improve conven...