The Semiconductor Industry Recession Just a Transient Phenomenon

Market research institutions SemicoResearch points out, the semiconductor industry from summer begins a recession would be just a transient phenomenon, and it will hit bottom in February 2012.

Focus on the macro economic conditions deterioration and consumer spending attenuation, semiconductor industry supply chain is on the breaks and began to consume the inventory; Nervous manufacturers should be keep the Destocking Process in the end of 2011 to 2012, its excessive reaction is seen in their business slow growth, it is expected that the whole industry capacity utilization at the end of this year will reduce from 90% in the beginning of this year to 80%.

However, the manufacturer Destocking Process will let industry recession time shorter than expected; SemicoResearch Inflection Point Indicator economic model predicts that the current industrial recession will be hit bottom about in February 2012, so it seems the whole time is about three seasons, the expectation will be seen in the next year.

Last month Semico reduced the semiconductor market growth forecast for 2011, reduced from the original 6% to 1.4%; but the agency forecast 2012 chip market can have 8% rebound growth. However, the market did not see short-term catalyst that can reverse the semiconductor market in the next few months to appear.