Nicolas Mokhoff Editor, Special Issues

Call it what you want: the perfect storm, nuclear winter or a tsunami wave. Whatever the nomenclature, one thing is sure: The electronics industry is riding out the worst economic weather in five years. And industry observers expect more of the same till at least the end of the year, a fact that is spurring much reflection, retrenchment and reorganization.

EE Times' annual Midyear Forecast this year is chock full of guidance from executive captains of the industry. Still, one semiconductor CEO exclaims, "While we have done our best, the 'perfect storm' cannot be navigated perfectly. . . . we have endured the most severe downturn in the history of the semiconductor industry."

And so, the winds accelerate and intensify the need to make changes. That same executive ponders: "Every aspect of a business is under cost scrutiny, from R&D to manufacturing to market channels."

Among the 33 industry executives polled below, not one ventures to attach a date to the recovery. Some feel it's on its way, some sense that it won't happen until early next year. When the relief of the upswing does come, it will be the innovators who will reshape the industry. As another CEO puts it: "Who? How? Where? The thing that's so nice about innovation is that you don't know where it will come from until it surfaces."

What is certain is that the next positive economic cycle will depend more than ever on new silicon chips. Without them there will be fewer exciting new consumer products to buy, but without new design-automation tools, there will be no new superchips. So the message is clear: Keep innovating.

A third executive lays out the uncertain playing field: "We know the storm will end, and the weather will improve. But no one knows exactly when, or what form, the improvement will take."

To set the proper direction, anyone involved in the business of electronics needs to keep a weather eye on the environment. This Midyear Forecast-with its CEO Perspectives, regional reports from the United States, Europe, Asia, China and Japan, and Analysts' Outlooks-should offer enough data to help push the oars that will get this boat into calmer waters.

The basics breed success By John East Minimize those NRE costs By Doug Bailey Check the EDA barometer By Simon Davidmann Rewriting the rules By Fred Shlapak Service makes the difference By Toshio Nakajima Fielding solutions, not parts By Scott McGregor Remain tightly focused By John Dickson Lessons in social studies By Pasquale Pistorio Maintain flexibility By Robert LeFort Korea will lead recovery By Vic Kulkarni Future looks programmable By Ken McElvain Wireless is growth engine By Mukesh Patel Be a winner-innovate By Martijn De Lange Web optimizes collaboration By Kuo-Chun Lee Focus on the fundamentals By C. Michael Chang Write once, port everywhere By Shay Ben-Chorin Ultrawideband is coming By Martin Rofheart

Upturn just around corner By Jay Roy Down in the flood By Stephen D. Senturia Demand holds in flat panels By Jim Iuliano Portable displays shine By Elie Antoun No tools, no superchips By Bernd Braune Voice still matters By Ron Van Dell Comm apps to fuel recovery By Thomas J. Engibous Fashioning opportunities By Mark Spitzer Horizontal path to survival By Bruce Murdock Innovate to survive By Axel Tillmann IP still strong despite slump By William Peavey Making technology relevant By Jim Derbyshire Outsourced packaging rises By Bruce McWilliams Selective recovery in sight By Ken Iida Linux rises as budgets fall By Tim Witham What's the next driver? By Ian Getreu

U.S. recovery needs consumer By David Lammers Europe's 'year of transition' By Junko Yoshida Korea leads recovery in Asia By K.C. Krishnadas, Mike Pan, and Park Dong-Wook

China is open for business By Mike Clendenin Video's mobile in Japan By Yoshiko Hara