We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
78,696 News Articles

Credit crunch to hit global tech sales

Gartner sees chip industry slowing

Slower consumer spending on electronics will slow semiconductor market growth this year, a Gartner analyst said Monday - but the market researcher will likely leave its chip market forecast for 2008 little changed when it publishes an update this week.

"We do not believe that the semiconductor industry can remain completely immune to the macroeconomic environment," said Gartner analyst Richard Gordon in the market researcher's Semiconductor Monday DQ Report.

"We expect business and consumer spending on electronics to slow in coming quarters, and semiconductor market growth to remain muted," he added.

The market researcher's prior forecast for 2008 semiconductor revenue growth stood at 3.4 per cent to US$278.4 billion the last time it revised its estimate in March. Previously, Gartner had predicted growth of 6.2 per cent.

Gordon wrote that the current forecast will likely not change despite strong revenue growth in the chip industry during the first half of this year.

The market researcher fears that the credit crunch on housing markets in the West and high energy prices will hurt consumers worldwide, leading to slower spending on electronics gear.

Even emerging markets such as China, India, Russia and South America, which have bolstered PC and mobile phone sales this year, will slow, Gordon said in a note two weeks ago.


IDG UK Sites

Motorola Moto G2 release date, price and specs: Best budget smartphone gets upgrades

IDG UK Sites

How to join Apple's OS X Beta Seed Program: Get OS X Yosemite on your Mac before public release

IDG UK Sites

Why the BBC iPlayer outage was caused by a DDoS attack: Topsy and Tim isn't *that* popular

IDG UK Sites

How to make an 'Apple iWatch' using an iPod nano and a 3D printer