iSuppli Cuts 2008 Semiconductor Sales Forecast to 3.5 Percent
Citing “signs” in September that the semiconductor market “may be feeling the impact of the credit crisis and economic downturn,” industry research firm iSuppli has cut its 2008 semiconductor sales growth forecast from 4 to 3.5 percent, with the potential to cut more “if economic conditions continue to worsen.” The firm now predicts $280.1 billion in annual sales this year. “The credit crisis is impacting the semiconductor market on several levels,” states iSuppli’s Dale Ford. The first hit comes from “Wall Street firms themselves,” whose demand for electronic equipment is expected to drop, thinks iSuppli. But the firm also cites the broader constellation of companies that, unable to get funds due to the credit crunch, will also ratchet down their demand for semis. Also, the impact upon consumer confidence and purchases is expected to be significant.