Global IC Market Shows Positive and Negative Signs

According to a report released by VLSI Research, the company predicts that the global IC market in 2010 will grow by 32%, and in 2011 it will grow by 8%; in 2010, the equipment market will grow by 103%, and in 2011, it will grow by 10.6%. The company believes that the current global IC market presents some positive and negative signs; positive signs include:

(1) In terms of end-user demand, sales of electronic products rose for the fourth consecutive week, surpassing the 13-week moving average. Sales of consumer products and computers are booming, and operations and IT infrastructure are also strong. From a regional perspective, North America and Asia are prosperous, Europe is also ideal, and China is rising slightly.

(2) The NAND component has had a tight spot in the last week due to tight supply. The spot market has performed strongly and the price has also been lifted. In this area, there may be seasonal oversupply in the first half of 2011, but there will be a shortage of goods again in the second half of the year.

(3) The microprocessor has been stable in the spot market recently, but there may be some fluctuations after Intel has stepped up to launch the Sandy Bridge platform.

Negative signs include:

(1) IC shipments rose for the fourth consecutive quarter, mainly due to seasonal factors; November is usually stronger than October; however, market growth tends to be sluggish, with average selling prices rising for the second consecutive week.

(2) Due to the reduction of orders in the OEM industry, the delivery time in the fourth quarter was shortened and the capacity utilization rate was reduced. The customer's inventory was not very low and was still within the normal range.

(3) The recent spot price of DRAM has dropped, and if the price of DDR3 continues to slide rapidly, second-tier suppliers may begin to lose money.

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