The latest projections from the iSuppli Market Intelligence Service indicate that the market for standard logic will experience its worst decline in history during 2001.
Revenues for these small devices, commonly used in virtually every electronic system, will decrease 46% to just $1.6 billion from a high of $3 billion just last year.
To make matters worse for standard logic suppliers, recovery for this type of component will significantly lag the rest of the electronics industry, with revenues increasing to just over $2.3 billion by 2005, according to iSuppli, El Segundo, Calif.
Prices for standard logic are now stabilizing at their lows and are expected to remain static through the end of the year, the company said. Suppliers have done a good job in cost reduction and are making some money at these current levels. They have also invested in bringing newer devices and packages with higher ASPs to market and that will help them through these tough times, iSuppli said.
"Buyers should be on the look-out for new designs that include TTL devices, as suppliers will increasingly be paring their offerings in this area and not pursuing development of new families of these parts," the company said. "They should encourage engineering teams to switch to CMOS equivalents to avoid end-of-life problems that might impact continuity of supply."