SAN FRANCISCO—Sales growth for pure play chip foundries is slowing in the second half of 2012 after a strong second quarter, according to market research firm IHS iSuppli.
IHS (El Segundo, Calif.) said foundries likely began seeing a reduction in orders for future sales during the third quarter. While demand for advanced technology will continue to drive overall revenue growth within the industry, IHS predicted that foundries will being to feel the effects of external influences—such as a deteriorating global economy.
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Pure play foundry sales grew by 16 percent in the second quarter to reach $7.8 billion, IHS said. But growth began to slow in the third quarter, with sales reaching an estimated $8.3 billion, up 8 percent from the second quarter, the firm said.
IHS projects that pure play foundry sales will decline by 5 percent in the fourth quarter to $7.9 billion.
Foundry sales typically decline in the fourth quarter after peaking in the third quarter. What is unusual about this year is that pure play foundry sales grew by a higher percentage in the second quarter than the third, the firm said.