Feeds

Fat chips reduced to small fries

Semiconductor biz feels the pinch as growth falls

Top 5 reasons to deploy VMware with Tegile

Chipmakers have fired off a warning that they expect to see the semiconductor industry slow with a predicted sales growth of less than two per cent this year.

The grave assessment issued by the Semiconductor Industry Association (SIA) has been pushed down from an original forecast of 10 per cent microchip sales growth for 2007.

SIA attributed the re-jigged figures to sharp declines in the average selling price in three significant segments: microprocessors, D-ram, and Nand flash memories.

It said strong unit growth was expected and that the revised sales growth prediction of 1.8 per cent was worth $252bn (£128bn) in 2007, rising to $306bn in 2010.

SIA president George Scalise said: "PCs continue to be the largest single end market for semiconductors. Despite strong unit PC sales growth, we expect that total sales of microprocessors will decline by 1.6 per cent as intense competition is contributing to price erosion at a more rapid pace than historical patterns."

Microprocessor makers Intel and AMD have likely contributed to the decline with both locked in a price war, slashing costs to push up sales.

Scalise added that the D-ram market was under severe price pressure. He said: "Average selling prices in April of 2007 were down by approximately 33 per cent compared to December of 2006."

MP3 players largely depend on Nand flash for storage of music, but despite an explosion in demand with an expected growth of 20 per cent this year, according to Scalise "the market segment is experiencing price attrition in a very competitive environment".

More from the SIA here. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.