Feeds

Researcher halves 2005 chip biz growth forecast

Weak Q4 followed by 'very slow' H1 2006

Beginner's guide to SSL certificates

Market watcher iSuppli has cut its 2005 global chip sales forecast, halving its year-on-year growth prediction from 5.9 per cent to just 2.4 per cent.

The upshot: the world's chip makers will sell $232.7bn worth of kit this year, rather than the $240.6bn iSuppli suggested earlier this year.

iSuppli noted it reckons next year's growth would come to 4.3 per cent, better than the 3.9 per cent it previously predicted. However, the slowdown this year means the chip industry is still worse off, bringing in $242.8bn in 2006, well below the $250bn it would have netted on the basis of iSuppli's original forecast.

The chink of light in the gloom is the prospect of much better, double-digit growth in 2007 through to 2009.

It's not hard to see why iSuppli has lowered its forecast: rising energy prices, potentially exacerbated - albeit to an unknown extent, the researcher admitted - by Hurricane Katrina.

To that, the researcher adds the "growing excess of manufacturing capacity" - demand is slowing and prices tumbling, iSuppli said, but manufacturers are increasing production. Q3 production will be 3.1 per cent up on Q2's figure. Capacity utilisation will rise from 83 per cent to 86 per cent.

“Although a strong third quarter is expected," said Gary Grandbois, one of iSuppli's principal analysts, "this will be followed by a flat fourth quarter, which will result in four per cent growth in the second half of the year... leading into a very slow first half for 2006." ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.