iSuppli Reduces 2009 Semiconductor, Electronics Forecasts

Amid lingering economic woes and continuing poor visibility into future demand trends, iSuppli Corp. is reducing its forecasts for global semiconductor and electronic equipment revenue in 2009.

Worldwide electronic equipment revenue is set to decline to $1.38 trillion in 2009, down 9.8 percent from $1.53 trillion in 2008. iSuppli’s previous forecast in April predicted a 7.6 percent decline in revenue.

Global semiconductor revenue is set to fall to $198.9 billion in 2009, down 23 percent from $258.5 billion in 2008. iSuppli’s April forecast called for a 21.5 percent decline.

“The global economy and technology industry have undergone a period of uncertainty and volatility,” said Dale Ford, iSuppli’s senior vice president, market intelligence services. “With technology companies downgrading their forecasts, and with little visibility into future demand trends, conditions appear to be worse than previously expected in 2009.”

However, with the start of the second half of the fiscal year, conditions are looking up for both semiconductors and electronic equipment, iSuppli said.

“iSuppli is projecting the semiconductor industry will show improvements beginning in the fourth quarter of 2009, which will provide the basis for overall growth of 13.1 percent in 2010,” Ford said. “Global electronic equipment revenue also will rise by 4.9 percent in 2010.”

For more information on this topic, see iSuppli’s new report 2009: U-Shape, V-Shape or Double Dip?.