21 August 2008

Record Sales for IC Design Houses

Digitimes reports that despite an economic slowdown, some of Taiwan's IC design houses are anticipating record sales in August. Digitimes writes:

Despites global economic worries, August sales for some Taiwan IC design houses are expected to hit a record, with companies including Richtek Technology, Global Mixed-mode Technology (GMT), Anpec Electronics, Orise Technology, Sitronix Technology, Ralink Technology and Global Unichip seeing strong sales, according to market sources.

With stronger demand for PCs and notebooks and with the companies increasing their respective market shares in the third quarter, Richtek and GMT both had outstanding performances in July. Both their August sales are expected to be record highs for the companies and their sales in September will keep growing, the sources noted.

The continued strength of the PC sector has been a surprise to many people. In an economic downturn luxury items such as PCs are not meant to sell as well. We have commented before this may be because of the emerging markets in India and China with a growing consumer base that can afford these products and balance the adverse affects of demand in other parts of the world.

It may also be that PCs have become a larger part of our daily lives and perhaps people are seeing them more and more as neccessities rather than a luxury. The advent of the low cost PC and the demand for these products would also have helped maintain demand and keep the design houses in the game as these devices still need chips for the motherboards.

1 comment:

Anonymous said...

Well, it would make sense for Taiwan design houses to be making more money if they are taking a greater share of the overall market even if there's a slowdown in the growth of the overall market.