Chip Industry Eyes Recovery Slowed

Chip Industry Eyes Recovery Slowed

The semiconductor industry is looking at the first signs of recovery, struggling to sell their unsold inventory of chips as a result of a slowdown in consumption, said industry executives Thursday.

Industrial crisis hit demand for consumer gadgets is slowing in Europe and elsewhere due to economic uncertainty, a time when the vendors have invested heavily in new production equipment.

Chip designer ARM has said he is optimistic that the reductions in inventories of equipment manufacturers, which is a decline in demand for semiconductors, it would be short-lived.

"We see ARM holders who wish to further and body language is more positive than a quarter ago," CEO Warren East said Thursday.

The chip maker STMicroelectronics said French hopes to return to normal business for the second quarter of 2012 after the inventory is off, its chief executive, said an investor conference in Barcelona.

Comments by STMicroelectronics sounded analyst firm Gartner, who said he expected an inventory correction continues to darken the prospects for the sale of the recall of the previous year sequential growth may return in 2012.

Microchip Maker United States is called the bottom of the cycle when it reported third-quarter results earlier this month.

Microchip, often considered a canary in a coal mine for the chip industry, said he expects the inventory burn-off to be largely completed by the end of the 2011 and hopes that the December quarter to mark the bottom of this cycle in the industry.

While still predicting a slowdown at STMicroelectronics in the fourth quarter, sales in weak report the results of last month, CEO Carlo Bozotti said the company experienced a slight increase.

Chip Industry Eyes Recovery Slowed

"After a couple of weeks we have seen the book and over again," said Bozotti, adding orders were still at a low level, and it was not clear how sustainable development has been.

Helping fragile recovery SMARTPHONES

ARM, whose processor is licensed under the designs chip makers such as Texas Instruments and Samsung Electronics, said royalties are growing faster than the market in 2012, driven by hot products smart phones like Apple iPhone 4S, which is powered by the models .

"We hope next year to another year of significant growth for smartphones," said Morgan Stanley Technology Environment, Media and Telecommunications held in Barcelona.

He said, however, that the amount delivered undoubtedly affect economic conditions.

In Taipei, the president of ARM Tudor Brown said he expects the semiconductor industry to grow "a small percentage" in 2012.

Research firm iSuppli IHS on Thursday cut its forecast for growth in the global market for semiconductors in 2011, only 1.2 percent growth was 2.9 percent previously forecast.

IHS iSuppli said the weak economy would continue to depress consumption in 2012, first driver electronics and semiconductor industry, market demand, which is "anemic" 3.2 percent of the chip industry.

Chip Industry Eyes Recovery Slowed

"Let's go back to the beginning of strong growth until 2013. However, any growth forecast is conservative by nature, several factors threaten to drive the economy into recession, which would increase the market for semiconductors will double dip," he said.