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Global IC market could fall 1% in 2015: IC Insights

Global IC market could fall 1% in 2015: IC Insights

Taipei, Oct. 24 (CNA) The global integrated circuit market will likely fall by 1 percent year-on-year in 2015 due to a slowdown in the world's major economies, in particular China, the second largest in the world, according to market information advisory firm IC Insights. The latest forecast represented a downward revision made by IC Insights, which had previously predicted that the global semiconductor market would rise 1 percent from a year earlier. IC Insights said the cut in its forecast also reflected a stronger U.S. dollar, which has deflated foreign sales and market figures by making average selling prices of foreign IC suppliers lower in U.S. dollar terms. The advisory firm's forecast seemed to be less optimistic than a prediction made by Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the world's largest contract chip maker, which last week trimmed its own estimate to zero growth from an earlier forecast of a 3 percent increase. IC Insights said that the world's IC industry got a good start in 2015 and recorded a strong first quarter, when the market growth hit 6.5 percent from a year earlier. The firm said the momentum extended into the second quarter with growth in April and May up 5.6 percent year-on-year. But, the situation changed starting from June, when the global IC market fell 3.1 percent and the slowdown continued into July and August, IC Insights said. The firm said that the global IC market for the second half of this year could fall 1 percent from the first half, and it could be the fifth time since 1990 that the second half of the year for the IC industry was worse than the first half. IC Insights said that the weakness in the second half has prompted the firm to lower its forecast for 2015 growth to minus 1 percent from an increase of 1 percent. Looking into 2016, IC Insights said that the current excess IC inventories could be brought under control by early next year, and by then the global economy is expected to be better compared with 2015, while the strength of the U.S. dollar could also moderate by then. As a result, IC Insights said, the world's semiconductor market could stage a rebound to grow by a mid-single digit rate next year. (By Jackson Chang and Frances Huang)


Updated : 2021-09-27 19:35 GMT+08:00