How to deal with the financial crisis in the semiconductor industry?

30 years, the world's worst financial crisis, and in 2000 when the network bubble burst different, involving the global scope, including the United States, Japan, Britain, Germany, almost no one can escape. And how long the storm is still difficult to conclude. The impact of the semiconductor industry has reached a consensus: Thanksgiving, Christmas and new year's day before the new year and the second half of the season is not strong in the first half of the semiconductor industry will continue to weaken.

The economic crisis is not alarmist, no one can be sure not 2008 economic crisis sweeping the globe, at least from the beginning of the global financial market has shown no confidence on economic growth, we should probably call the recession more reasonable. Specifically, this modern form of economic crisis in fact will periodically appear and affect the development of the global economy, developing countries rely on the transfer of economic pressure will minimize harm degree of the economic crisis.

For the semiconductor industry, the real meaning of the economic crisis does not seem to have experienced, but the recession has repeatedly experienced personally experienced. However, many years ago, the semiconductor has not developed to such a height, is just a high-tech industry, far from being so closely linked to the global economy as it is now.

From the point of view of the current parties, 2008 will be a relatively weak year for semiconductors, and the most important reason for this result is the global economy, especially the u.s.. We might as well assume that the current economic crisis is in front of the semiconductor, from the worst point of view to analyze how to deal with the financial crisis of semiconductor manufacturers.

The economic crisis, from the performance point of view is the overproduction of products, that is, oversupply. For most semiconductor manufacturers, this means that the sharp decline in sales, resulting in a sharp decline in the profits of the entire industry. Even more serious is that the economic crisis led to a large number of tight money, the result is more necessary to be forced to postpone the update, the normal market demand for semiconductors is also facing high risk. The shrinking market for semiconductors hit much, we really cannot measure, but we also can not be with the traditional semiconductor industry in semiconductor industry, because of its own characteristics, especially the high-tech added value is relatively high, the profit space compression may have.

[expert interpretation]

Ni Guangnan: the financial crisis will focus on semiconductor companies to follow the development of new products

In the case of foundry, the impact of the economic crisis is close to that of traditional industries because of the decline in the number of orders and the increase in production costs. Although there is no big pressure of layoffs, but its overall operating profit will be greatly affected, at the same time, with the Foundry more and more important role, they have also faced to continue the development of new technology and new process pressure, to ensure the future can seize the market. From this perspective, affect the factory due to the economic crisis is the main financial, because, with the advent of the economic crisis, more semiconductor manufacturers may gradually shut down its own production lines, to OEM production, so relatively few other effects on the surface of chain, foundries are the smallest, but perhaps it is the semiconductor industry chain most hurt, because when other links are to power, foundries may need to increase efforts to maintain their scale of operations, this may cause some financial risk.

It can be said that for the semiconductor industry, the biggest impact of the economic crisis in the shrinking market, financial constraints and so on, and the main countermeasures are compression product profitability, operational cost savings, will shift the focus of subsequent development of new products. Impact on industry are reflected in two aspects, one is the poor economic situation, the product is relatively simple, the lack of competitiveness of the manufacturers will be eliminated, the low-end market competition becomes fierce, slow down the speed of improving product performance; two is the number of new products in the development stage, the added value of R & D increased, until after the economic recovery the performance of the product and the market will get a rapid growth of relatively large.

Of course, these are our guess, after all, with the trend of world economic integration, the performance of the economic crisis is not so deep before, the impact on the industry is no longer fatal. In the semiconductor industry, the decision makers should open as soon as possible to deal with the strategy of industry recession, after all, when the industry really began to decline when thinking about these problems have some lag, this is likely to miss the opportunity to adjust the company strategy.

Source: China semiconductor lighting network