, Singapore

Analysts fear tough times loom for the semiconductor sector

Signs say an industry watcher would be nuts not to lower growth forecasts.

OCBC Investment Research said the outlook for the semiconductor sector has taken a turn for the worse due to the tepid macro economy, excess inventory levels and increasing consumer pessimism.

Here’s more:

Industry watchers Gartner and IHS iSuppli have also recently pared their forecasts for global semiconductor sales. Gartner now believes that the industry could register a 0.1% decline in 2011, a sharp contrast to its previous projection for a 5.1% growth made in 2QCY11 (forecasts for 2012 also lowered from 8.6% to 4.6%). IHS iSuppli on the other hand, still expects the industry to grow in 2011, albeit at a slower pace of 2.9% versus its previous forecast of 4.6%. Outlook in 2012 is expected to remain bogged down by the stagnant economy, with sluggish revenue growth of 3.4% predicted.
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