Europe's monetary and debt woes are now clearly having an effect on its ability to do business - which is a yet more frightening prospect, than the crisis we are already living with.
And this is semiconductor sales we are talking about, one of the best but toughest ways to create value and wealth.
in Europe's case consumer electronics is not such a large factor; we
more or less got out of that some time ago. Philips is now a
"life-style" company and Nokia, former top dog in the mobile phone
sector, is now just one of the pebbles adding momentum to the European
landslide. So we are talking about a 13.6 percent drop in a figure that
is more heavily weighted towards automotive, industrial and medical
electronics, supposedly markets that are more immune to the vicissitudes
of fickle consumer sentiment.
The SIA/WSTS figures hint that
Europe could be about to face a further collapse that strikes at the
heart of its ability to work its way out of its problems.
role as the leading country in Europe that has pursued an economic
policy with manufacturing exports at its base has never been more
important. But any, much needed, resurgence of industry is clearly under
pressure as companies may choose to try and avoid the perceived
inclemency of the European climate.
And lest you think it could
not happen here; remember the social chaos, hyperinflation and
dependence on American loans faced by the Weimar Republic in the 1920s.
Related links and articles:
Chip market still shrinking versus 2011, says SIA
Analysts find May was weak month for chip market
Analyst lowers chip market forecast for 2012
SIA, WSTS expect flat chip sales in 2012