Electronics Production | May 03, 2006

Is the semiconductor<br>market under estimated?

Semiconductor market analysts are still under estimating how good a year 2006 could turn out to be according to Malcolm Penn, chairman and CEO of Future Horizons.
Speaking at his company's Annual International Electronics Forum, Penn was still confident that his forecast made in January of a growth in dollar sales of semiconductors topping 20% this year was realistic while unit sales would grow 12%. Other major analyst predictions are coming out showing an average growth of 8% with only one willing at present to break the 10% barrier.

Penn is bullish that a combination of an improvement of 4.9% in world GDP which the IMF upgraded from 4.3% last week, a rise in unit demand and a shortage of capacity, pushing prices up, will provide the catalyst for a good year. "All the evidence is strong and everything is in place - if it is not a strong year then the semiconductor industry does not deserve a strong year," says Penn.

No-one believes that the chip industry can bounce back says Penn and there is too much of the 'Ill see believe it when I see' attitude but by the time it becomes evident it will be too late too take advantage.

Click here to read the full article on EETimes.


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