SIA slashes 2007 semi outlook
The Semiconductor Industry Association (SIA) has downgraded its forecast for 2007 global microchip sales growth to 1.8%.
Forecasts are always tricky. The uncertainty is compounded with the rapidly changing market conditions. However such a big change i.e. 10% forecasted in Feb this year down to 1.8% 3-4 months down the line is quite dramatic.
Reasons cited for this forecast change: rapid price attrition in three key market segments – microprocessors, DRAMs and NAND flash memories. Incidentally, another news item, “Intel plans 50% price cut for Core 2 Quad chips” was reported on the same day.
Does provide fodder for thinking………………….