The global semiconductor industry decline manufacturers suspected market demand

For the global semiconductor industry is stuck in the doldrums, recently the industry has heard some international companies have cut the news. In view of the two quarter of the semiconductor market continued to show a downturn, the market performance is not very optimistic about the situation, the current part of the component dealers have begun to doubt the strong demand for the semiconductor market in the third quarter. It is reported that, due to the global semiconductor industry downturn, STMicroelectronics in exports greatly limited, recently STMicroelectronics intends to lay off 3000 people, and to enhance the global competitiveness in the market to work through layoffs. The company's public relations manager Qiu Hong, said the Italian law intends to lay off 3000 people in mid -.

Japanese digital camera manufacturer Olympus Corporation also recently said that as part of a restructuring plan for the recovery of the profit, the company will cut 4000 jobs in the loss of the camera department, equivalent to the total number of employees in the sector 30%. OLYMPUS said the layoffs will mainly focus on two camera production plants in china. The company released its first loss year report on Monday, saying it was mainly affected by the fierce price competition in the digital camera market.

Two international companies due to the market performance is not optimistic, therefore make layoffs. But in the second half of the year whether the semiconductor boom, well-known market research firm Semico recently released data, March rebound index was 15.5, compared to February's 16 decline, applied materials second quarter new orders of $1 billion 550 million, compared to the first quarter also decreased by 7%. Due to the high level of electronic industry inventory, Semico therefore predicted that the semiconductor industry in the third quarter of the market outlook is expected to rebound, I am afraid it will not be too strong.

It is understood that the global semiconductor boom reached its peak in November last year, then increased due to inventory problems, leading to the first and two quarter revenues are not unexpected growth in the second quarter of 2005 so far, the semiconductor market continued in the digestion of inventory. Therefore, to predict the semiconductor market in the first half of the growth, the industry's attitude is very cautious.

The inventory problem for the semiconductor market this year, a former investment research firm Morgan Stanley February pointed out that the global semiconductor manufacturers continue to expand to 12 inch production line, in effect 12 inch Fab productivity effect, estimated in 2005 will inevitably lead to the situation of excess production capacity of semiconductor. The agency estimates that in 2005 the semiconductor demand will grow by 11%-12% in 2004, the supply capacity has increased by 14%-15%, in the case of relatively weak demand, inventory problems at the end of 2005 more than the end of 2004.

Plus the semiconductor manufacturers due to the high demand in the second half, before the market demand has not yet fully warmed up, still get into the expansion of production capacity. Many people in the industry are worried that once the demand is not as expected, the level of semiconductor stocks is likely to rise immediately. Affected by this, the spot dealers have to worry about the relevant components of the situation when the market is too cold, the status quo.