Optimistic flat panel display manufacturing semiconductor under half of global concern

According to "EE" (EE.Times) editorial department survey said, although the semiconductor manufacturing industry in the first half of 2005 in the field of electronic is optimistic and complex, but in the display department key, the global trend is worrying.

Due to correction of the industry is expected to rebound in the second half of the global market seems to make the chip represents a peace. Analysts said that in the case of the whole year, the first half of the higher indifference should not be a problem. But the rising demand for chips and the dynamics of the IC market are not appropriate for the display sector.

In recent weeks, some industry executives stressed that the application of multimedia mobile phone system is likely to industry in the storage chip sector provide a major boost, but when added to the next generation multimedia mobile phone many functions appear, due to fierce price competition and increase the cost, but it was some mobile phone manufacturers boycott. Industry observers said that the emergence of any kind of situation, will make the chip manufacturers to meet the changes in demand.

Analysts said, this does not necessarily mean that IC is on a drive to improve equipment manufacturers, the main difficulties of income on the contrary, half equipment manufacturers are facing the decline in profits this year. One reason for this is that when the next round of chip business cycle appears, chip manufacturers will still need to buy integration tools.

Despite an increasingly fierce competition in the market segments is becoming the industry leader, but flat-panel display department key depicts less light, market researchers expected flat-panel display demand will grow, but can not determine the prevalent, high capital investment to expand the factories in the second half of this year to to recover the investment profit.

In the United States, increasing the scope of many uncertain economic troubles, including the rules of rising energy prices, Iraq continuous unrest and housing bubble threat. China published will push the next generation wireless plan, Beijing continues to delay the expected later this year in the 3G licensing.

A bright prospect of electronic industry in the first half of this year is expected to increase the risk of capital investment, after the first 6 months of the quiet past, half of the venture capital investment this year will be a smooth rise. However, in 2005 the total number of electronic industry venture capital investment is still lower than last year.