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ISuppli reverses semiconductor sales forecast to 2% fall

Global semiconductor sales will probably fall 2 percent this year because of the deteriorating global economy, industry researcher ISuppli Corp said.

Revenue in the industry will decline to US$266.6 billion this year from US$272 billion a year earlier, the El Segundo, California-based researcher said in an e-mailed statement yesterday. ISuppli in September forecast sales would rise 3.5 percent.

The researcher joins WSTS Inc, the industry’s largest association, in lowering its outlook amid slumping demand for electronic equipment and consumer products.

On Tuesday, the San Jose, California-based WSTS lowered its growth forecast for this year to 2.5 percent from the 4.7 percent estimated in May. For next year, chip sales may decline 2.2 percent to US$256.1 billion, WSTS said.

“As dramatic declines in consumer and industrial confidence began developing in late summer, order cancellations began to grow and in many cases, slowing orders degenerated into a complete stop,” Dale Ford, senior vice president of market intelligence services for iSuppli, said in the statement.

The US has entered a recession that will persist into next year, according to a survey by the National Association for Business Economics.

Japan, the world’s second-largest economy, fell into its first recession since 2001 in the third quarter and the 15-nation euro region is also in recession.

The British economy will contract the most in almost three decades next year, the Confederation of British Industry said on Monday.
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