LONDON Morris Chang, chairman and CEO of foundry chipmaker Taiwan Semiconductor Manufacturing Co. Ltd., has given a dismal outlook for the world economy and the chip industry, which is closely coupled to it, according to reports.
Speaking at an awards ceremony on Wednesday (Oct. 12) Chang said no swallow will be in sight throughout next year, according to the Taiwan Economic News.
The U.S., European and Japanese economies are all in weak condition and China will not be able to bail them out unlike in 2008 because it is now struggling with inflationary risks in its own economy, Chang is reported to have said. The U.S. economy will not recover until 2013 and the European nations' debt crisis is more serious and complicated than previously thought.
As a result the semiconductor industry is going to face a slow recovery from its present, third quarter weakness, the reports referenced Chang as saying.
Chang did not quantify his prediction but recently trimmed his prediction for annual growth in the global chip market less memory to 4 percent. EE Times has predicted that, based on Q3 sales figures from TSMC and rival United Microelectronics Corp. and other inputs, the global chip market will shrink in 2011.
Related links and articles:
Foundries' Q3 sales point to 2011 chip market decline
TSMC says sales declined in September
Forecast sees hard year, fewer chip makers