SAN FRANCISCOSemiconductor sales will decline 1.7 percent this year and another 6.9 percent in 2009, according to a revised forecast by market research firm VLSI Research Inc.
VLSI (San Jose, Calif.) had previously forecast IC growth of 3.6 percent in 2008.
Following a 24 percent decline in 2008, revenue from IC equipment sales is expected to drop
an additional 25 percent in 2009, according to the revised forecast. VLSI had previously predicted a decline of 12 percent in 2009.
With IC sales expected to decline next year, chip makers have been announcing further planned reductions in capital expenditures for 2009, which will cause yet another double-digit drop for equipment, the firm said.
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VLSI joins a slew of market watchers who have in recent weeks revised downward projections for sales of chips, equipment and broader IT markets in light of the global financial crisis and economic doldrums. On Wednesday (Nov. 19), the Semiconductor Industry Association reduced its IC forecast, projecting that 2009 will bring the first decline in sales since 2001.
The display equipment market, which is currently on track to grow 34 percent in 2008, will experience a 45 percent decline in 2009, according to VLSI's revised forecast. The firm cited slowing display sales, owing to the decline in demand for flat-panel TVs.
VLSI had previously forecast a 26.5 percent decline for display equipment in 2009.