Chip Market May Contract Again

Dylan McGrath, EETimes
3/21/2016 00:01 AM EDT

At least one market watcher thinks the semiconductor industry will decline slightly for the second straight year for the second time in its history.

A least one semiconductor industry market watcher is now predicting contraction for the year, based on macroeconomic sluggishness, weak memory pricing and lack of a “killer app” to drive chip consumption.

Semico Research Corp. recently revised its forecast for 2016 semiconductor sales. The Phoenix-based market research firm now sees thee industry contracting slightly this year, by about one-third of a percent. Late last year Semico was projecting industry revenue would increase this year by 3-4%.

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