Yesterday in Financial Crisis Pushing Taiwan's Tech Sector Down we noted how the financial crisis is affecting Taiwan's tech sector. Of course the financial crisis is not only wreaking havoc with the tech sector in Taiwan but with the global hi-tech value chain. Yesterday Reuters noted the president of SEMI as saying there will be a significant decline in global sales of semiconductor equipment. According to Reuters:
Global sales of semiconductor equipment are expected to fall 28 percent to $30.9 billion this year as deteriorating world economies prolong a slump in the chip sector, industry association SEMI said on Tuesday.
SEMI said sales had declined to levels last seen in 2003. Earlier this month, it said North American chip-equipment orders fell 28 percent in October, while in Japan they plunged 68 percent as chipmakers slashed or even froze spending.
"We anticipate a second year of double-digit decline in 2009," SEMI's President and Chief Executive Stanley T. Myers said in a statement.
SEMI said it expected a 21 percent decline in 2009 followed by 31 percent growth in 2010, although it was relying on history repeating itself as it had little else to go on.
"Impaired or non-existent business trend visibility is pervasive amidst the deteriorating global economy. Therefore our outlook for 2010 is based on patterns of previous industry recoveries," Myers said.
In related news, yesterday Kaohsiung based Applied Semiconductor Engineering (ASE), the world's largest chip packager, has cut is Q4 revenue outlook by between 25% and 28%. According to the Taipei Times:
Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), the world’s biggest chip packager, yesterday slashed its fourth-quarter target, blaming accelerating contraction in demand amid a global economic slowdown.
ASE said fourth-quarter revenue could decline by between 25 percent and 28 percent quarter-on-quarter, rather than its forecast of a drop of between 15 percent and 20 percent a month ago, following in the steps of semiconductor heavyweight Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which recently trimmed its outlook.“As end demand is shrinking faster amid deteriorating global economic prospects, the company’s fourth-quarter revenues will be lower than the forecast it made on Oct. 31,” ASE said in a filing to the Taiwan Stock Exchange.
The current financial crisis and associated slowing of demand and in the semiconductor industry is continuing to wreak havoc with the entire hi-tech value chain.
Reuters: Chip equipment sales seen down 28 pct in 2008-SEMI
Taipei Times: ASE cuts fourth-quarter sales forecast
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