HALF MOON BAY, Calif. -- During a presentation at the Industry Strategy Symposium (ISS) here, IC Insights Inc. sees a boom after the current recession.
The firm also described the current downturn--and consumer behavior--as more of a psychological phenomena. But still, the overall IC industry is projected to fall 17 percent in 2009, according to IC Insights. Not long ago, the firm projected that the IC industry would fall 10 percent in 2009.
Capital spending is also projected to fall 30 percent this year, said Bill McClean, president of chip market research firm IC Insights (Scottsdale, Ariz.).
Part of the problem is the economy and consumer behavior. ''The consumer is frozen; they don't want to buy,'' McClean said. 'It's like 2001.''
For better or worse, consumer spending for electronics is tied to the global economy, which is teetering. Worldwide gross domestic product (GDP) is expected to hit 1 percent in 2009, down from 2.5 percent in 2008, according to the firm.
Going forward, it's not a doom-and-gloom scenario. ''Every global recession is followed by a boom period,'' he said. ''Recessions (enable) pent up demand, especially in the electronics industry.''