2009 Global Semiconductor Revenue Likely To Drop 12%-iSuppli
DOW JONES NEWSWIRES
Revenue is expected to fall 12% in the global semiconductor industry this
year, far less than the 20% drop originally predicted by iSuppli Corp.
A rebound in semiconductor sales in the second quarter "means 2009 will be
much less painful than had been feared," said Dale Ford, senior vice president
at the research firm.
The better-than-expected results are due to a strong performance by memory
chips, which suffered from oversupply for much of the past three years, as well
as sales of chips for consumer electronics and wireless products.
iSuppli expects only one company--Samsung Electronics Co. Ltd. (SSNHY,
005930.SE)--of the top 10 suppliers to see higher semiconductor revenue this
year. Samsung, a dominant producer of memory chips, is forecast to see a 1.4%
increase, which constitutes a "standout performance during such a poor year."
Qualcomm Inc.'s (QCOM) semiconductor revenue is expected to be flat in 2009
because of its participation in the wireless segment and rising share of the
market for baseband chips for cell phones.
Among the companies with lower semiconductor revenue, iSuppli predicted
Advanced Micro Devices Inc.'s (AMD) would decline 7.6%, while Sony Corp. (SNE,
6758.TO) would drop 33%.
The wireless-communications chip market was the most resilient segment, with
an expected decline of 8.2%, followed by the data-processing segment, down 9.8%.
Hardest hit was the automotive electronics industry, with an expected drop of
26%, followed by industrial electronics and consumer electronics, both down 15%.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com
(END) Dow Jones Newswires
11-23-091828ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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