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Semiconductor industry to show growth in the fourth quarter, says iSuppli
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Although global semiconductor revenue is set to contract by 16.5% in 2009, iSuppli Corp has now projected that the fourth quarter will mark the first quarter in 2009 that revenue has risen compared to the same period a year earlier. Revenue is expected to rise by 10.6% in the fourth quarter, marking a recovery in the industry that is set to continue for several years.
“The seeds of the current recovery were sown in the second quarter,” said Dale Ford, Senior Vice President, Market Intelligence, for iSuppli. “During that period, manufacturers began to report positive book-to-bill ratios, indicating future revenue growth. This was followed by another sequential increase in revenue in the third quarter. Meanwhile, semiconductor inventories returned to more normal levels in the third quarter after chip suppliers shed stockpiles. They did this by slashing costs dramatically in order to reduce unsold inventory they’d been carrying since the beginning of 2009.”
The market research firm also noted that the industry should expect sequential quarterly increases in revenue into 2010. However growth will not be strong enough to get the industry backto pre-recessionary levels until the 2011-2012 time frame. 