Gartner Reports Dip in Chip Market

Iria · Jul 8, 2005, 06:21 PM

With projected sales this year to total $33.1 billion, the market for semiconductor equipment would be the envy of most manufacturing sectors. But the sales projections just released by research firm Gartner represent an 11.9 percent drop over last year's $37.58 billion in spending.

This year started out well. Gartner says the first quarter of 2005 marked a high point in spending to meet strong demand for computer chips across many industries.

"We expect this to a be a mild downturn," said Klaus Rinnen, vice president of Gartner's semiconductor research and design group, in a statement. "While the first quarter of 2005 marked the peak of the last upcycle, declining orders over the past few months and quarters paint a picture of slower sales for the rest of the year."

While Gartner's forecast may be cause for some concern in the industry, chip equipment sales and demand for chips fluctuates regularly. As the semiconductor industry moves into a slower growth period in its business cycle, the equipment industry is expected to respond with lower shipment rates required for slowing capacity expansion.

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Read More / Source: InternetNews.com

Jul 8, 2005, 06:21 PM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 89	Gartner Reports Dip in Chip Market With projected sales this year to total $33.1 billion, the market for semiconductor equipment would be the envy of most manufacturing sectors. But the sales projections just released by research firm Gartner represent an 11.9 percent drop over last year's $37.58 billion in spending. This year started out well. Gartner says the first quarter of 2005 marked a high point in spending to meet strong demand for computer chips across many industries. "We expect this to a be a mild downturn," said Klaus Rinnen, vice president of Gartner's semiconductor research and design group, in a statement. "While the first quarter of 2005 marked the peak of the last upcycle, declining orders over the past few months and quarters paint a picture of slower sales for the rest of the year." While Gartner's forecast may be cause for some concern in the industry, chip equipment sales and demand for chips fluctuates regularly. As the semiconductor industry moves into a slower growth period in its business cycle, the equipment industry is expected to respond with lower shipment rates required for slowing capacity expansion. __________ Read More / Source: InternetNews.com