Latest quarterly results for major IDMs show the slowdown continuing to have an impact, although another company has pointed to a bottoming out of the downturn.
Q2 revenue at Texas Instruments (TI) of $2.04bn was down 31% on a year ago and 19% on the previous quarter. Pre-tax income was $53m compared with $785m a year ago. It expects Q3 sales to be 10 to 15% down again.
But Tom Engibous, chairman, president and CEO of TI, says the economic situation could be nearing the bottom of the trough: "This is a severe downturn, but we see some signs of stabilisation. The rate of decline for semiconductor orders has slowed, and it appears semiconductor revenue is nearing a bottom."
Xilinx reported first quarter revenue of $289.3m, down 21% on last year and 29% on the previous quarter. Operating income fell to $30.3m from $121.4m last year, and from $85.3m in the previous quarter.
Rival PLD firm Altera reported a $89.2m loss on sales of $215.3m for Q2 after taking an inventory write-down of $127m. Sales were down 25% on the previous quarter and 37% down from the same period last year. It also expects a fall of between 10 and 15% for its next quarter.
German chip maker Infineon Technologies entered the red in Q3 and expects to stay there for the rest of the year. Only its automotive business showed any sign of a strong performance.
Revenue was €1.28bn compared with last year's €1.83bn and Q2's €1.65bn. Net loss was €371m, down from a profit of €266m last year and €23m in the previous quarter.
Arizona's Microchip Technology, which has already said it believes the downturn is bottoming out, expects revenue for its current Q2 to remain flat on Q1's figure of $138.9m. That is a drop from $177.7m in the same period last year and from $153.4m in Q42001.