SIA: The Chips Are Down–No Pun Intended
The semiconductor industry is widely considered a bellwether for the tech economy. So when the Semiconductor Industry Association starts sounding alarms over its outlook, it’s probably an opportune time to just stop tracking the tech investments in your stock portfolio.
If you haven’t stopped tracking them already, that is.
This morning, the SIA released its annual forecast of global semiconductor sales and it is a dismal one. So dismal, in fact, that the Association expects global chip sales to decline in 2009–something not seen since 2001. According to SIA, chip sales will fall next year to $246.7 billion, down 5.6 percent from 2008.
As I said, dismal.
“The current global economic turmoil is clearly having a significant impact on semiconductor sales,” said SIA President George Scalise. Indications are that both consumer and corporate spending on technology will decline in 2009. Visibility is very limited, and much will depend on how quickly public policy makers can act to restore consumer confidence.”