Industry Expert Blogs

At the recent AO Venture Summit,Silicon Valleyinvestors cautioned about changes to traditional investment funding models as the semiconductor market enters a cyclical downturn.

At the 2012 World Economic Forum held atDavos,Switzerland, financial leaders from around the world worry about the future of capitalism. As wealth disparity and the thread of a global recession stalks the planet, few would argue that fundamental financial changes are taking place.

One bright spot in the economic gloom is the semiconductor industry, which has experienced strong growth in recent years. But this is an industry prone to cycles that are tied closely to enterprise and consumer consumption, were the former seeks production efficiencies while the latter seeks social connectivity.

Reports suggest that this bright spot will dim slightly as the semiconductor industry enters a down cycle.  Earlier this month, speakers at the SEMI Industry Strategy Symposium (ISS) trade show predicted a chip downturn in 2013. Global foundry giant TSMC pegs the slowdown closer to 2012.

How will these changes affect the flow of investment dollars into Silicon Valley, the center of innovation for the semiconductor market?

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