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This downturn was NOT a classic semiconductor bust and boom, ignore industry fundamentals at your peril: Future HorizonsPradeep's Point! - Pradeep ChakrabortyAug. 10, 2010 |
According to Malcolm Penn, chairman and CEO, Future Horizons, May’s semiconductor sales were up 2.6 percent on April, 3.6 percent for ICs, continuing the steady sequential industry growth that started in January 2009, 17 months ago.
May’s results mean Q2-10 will show at least 8.3 percent quarterly growth over Q1-10, increasing the full year growth forecast to 36 percent. Given last year’s growth was minus 9 percent, mathematically this is a classic industry cycle. It is NOT, he insists.
At this point in the ‘recovery’, it is much more important to look at sequential and quarterly growth rates rather that the 12:12 rates, given the high double digit rates they show are just as misleading and irrelevant as the high double digit negative rates from this time last year. The reality is they net each other out thereby highlighting the real nature of the current cycle. This downturn was a pause, the recovery a restart, it was NOT a classic semiconductor bust and boom.
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