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Home > News > Infrastructure Predicts Greater Consolidation in Semiconductor and Related Markets in 2008

January 24th, 2008

Infrastructure Predicts Greater Consolidation in Semiconductor and Related Markets in 2008

Abstract:
New Website Features Comprehensive Review of ISS/SMC Forecasts and Issues

Story:
According to Infrastructure's just-released outlook and commentary from the SEMI® Industry Strategy Symposium (ISS), which was held last week in Northern California, continuing macroeconomic disruptions in the U.S. and other parts of the world -- driven primarily by debt-related issues, and concerns about declines in consumer spending -- are putting a chill on the prospects of the semiconductor sector for 2008. Chipmakers, already challenged to keep pace with Moore's Law, face pricing pressure and declining revenues that will likely ripple through the equipment OEM supply chain, spurring greater OEM industry consolidation in the year ahead. The article is one of several features highlighting proceedings at the 2008 ISS and subsequent Semiconductor Materials Conference (SMC), and is available on the new Infrastructure website, which serves executive level subscribers in semiconductor and related electronics markets.

"The consensus among the ISS panel of market forecasters is that 2008 is going to be a challenging year for the device makers," said Carl Johnson, managing director at Infrastructure. "Although IC unit volumes should continue to show decent growth -- around 10 to 12 percent -- average selling prices (ASPs) will be under pressure and revenues for the year are likely to be flat."

He added that semiconductor equipment manufacturers, confronting a year of declining revenue growth, are more receptive than ever to partnerships, collaborations, merger or acquisition strategies that help them expand market share and boost profitability. "We've been hearing predictions of consolidation in this industry for years," Johnson said. "Faced with the slowing revenue growth, 2008 could be the year in which we see an unprecedented number of corporate engagements and marriages in the equipment sector."

This complete story and additional features on the 2008 ISS and SMC conferences are available at www.infras.com.

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