SUNNYVALE, Calif.—The sky is not falling in semiconductors despite a lull in the market, according to Semico Research Corp.
In the first half of 2010, there was "a lot of momentum" in the IC market, said Jim Feldhan, president of Semico. Now, the momentum has subsided and the chip market is starting to "crest," Feldhan said.
Still, 2010 is expected to be a strong year. In total, the IC market is expected to grow 31.8 percent this year, according to Semico. In 2011, IC market growth is expected to slow to 9.5 percent, according to the research firm.
"Despite all of the rumblings, the first half of 2011 looks promising," he said. "Our concern is the second half of 2011."
The momentum of 2010 should carry over to the first half of next year. Then, in the second half of next year, the market could see lower average selling prices, excess capacity and a slowdown in memories, he added.