LONDON Ė The global market for semiconductors will grow by 4 percent in 2012, according to market research company Future Horizons Ltd. (Sevenoaks, England).
Malcolm Penn, CEO of the company, announced that he had reduced the growth figure from a previous estimate of 8 percent based on a pushing out of the recovery cycle due to macro-economic effects such as the continuing Eurozone crisis.
However, for 2013 and 2014 Penn sees double digit market growth of 15.6 percent and 16.0 percent.
Prospects should be good for the second half of 2012 with an inventory build-up partly created by the Thailand floods of 2011 now fully worked through, Penn said. However, demand is showing signs of weakness due to the global economic situation and for this reason Penn has reduced his view of the second half.
Penn said that capacity is now tight with no slack in the system. "Right now we're bouncing along the economic bottom. When confidence in the economy recovers, the chip market will explode," he said.
"I am optimistic for next year because we've cut back and cut back and things will rebound. The IMF has moved 2013 global GDP growth up to 4.1 percent from 3.5 percent; a massive increase."
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