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Semiconductor Production Equipment Forecast Lowered

 

VLSIresearch reported that it had lowered its forecast for 2016 Semiconductor Production Equipment sales to $44.0B, a drop of -9.9% from the $48.8B it expects the industry to achieve in 2015. It cited the approach of the Christmas Blackhole for drying up order activity in the current environment. VLSI calls this time of year the Christmas Blackhole because visibility goes dark until the holiday season is over. There is always a seasonal inventory buildup in anticipation of holiday sales. In great years, sales are cleared by New Year’s Day, leading to inventory restocking.  In good years, it still clears by the lunar New Year.

 

VLSI is not so optimistic this year in part because wafer fabs have been pumping out silicon at an unprecedented rate, while electronics demand has been weak. It sees electronics finishing out 2015 with a meager 0.8% growth, which combined with high levels of chip production, is putting heaving pricing pressure on semiconductor prices.

 

•Industry remains stuck in downturn territory

 

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The contents of this release are approved for use by media for news purposes identifying VLSIresearch as the source. No advertising or promotional use of this release by corporations can be used without VLSIresearch approval. All trademarks, service marks, and logos are the property of VLSI Research Inc or their respective owners.

 

About VLSIresearch

VLSIresearch is an award-winning provider of market research and economic analysis on the technical, business, and economic aspects within semiconductor, nanotechnology, and related industries. VLSIresearch provides intelligence for faster and better decision making in the areas of semiconductors, photovoltaics, LEDs, manufacturing, materials, and critical subsystems.  VLSIresearch was founded in 1976. Learn more at www.vlsiresearch.com.

 

Contact: Risto Puhakka| email: analyst @ vlsiresearch.com | ph:408.453.8844

VLSIresearch | Ph: 408.453.8844 | 2290 North First Street Suite 202 San Jose, CA 95131

 

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VLSIresearch.com          ChipHistory.org           weSRCH.com

 

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