Global chip manufacturers foresee drop in 2009 sales

Semiconductor manufacturers across the globe are predicting that sales in 2009 will fall around 2.2 per cent, according to a revised forecast by the World Semiconductor Trade Statistics (WSTS) group.

Referring to the overall economy, the semiconductor industry body said that chip sales would drop to $256 billion in the coming year, from an estimated $261.9 billion in 2008. 

In May, WSTS had forecast 5.8 per cent growth for 2009.

The industry body is comprised of 66 semiconductor manufacturers, whose sales together account for around 80 per cent of the global market.

The WSTS says that Asia-Pacific would be the only region showing growth in 2009, with a forecast of 1.1 per cent, down 7.6 per cent this year.  It predicts the Americas to be worst hit with a drop of 9.8 per cent, followed by a 3.8 per cent drop in Japan and 3.6 per cent drop in Europe. The organisation has also lowered its estimates for 2008, to 2.5 per cent growth from the earlier forecast of 4.7 per cent.

WSTS expects a 6.5 per cent growth in 2010, at a projected $273 billion, lower than the earlier forecast of 8.8 per cent growth.

The main reason for the forecast reduction in worldwide sales of chips is being attributed to weak demand for electronics globally. Reports suggest that chip giants Intel and Samsung are also bracing for weak computer sales during the holiday season that would most probably extend further into next year as the economic crisis hits consumer sentiment.