Poor PC performance will drag down semiconductor growth in 2011

Market research firm IDC recently reduced its 2011 semiconductor revenue growth forecast from the original 6-8% to 4-5%, mainly due to the bad PC market outlook. IDC had previously forecast the global PC shipment growth rate for 2011 from 7.0% to 4.2%; the agency said that this move was due to the fact that demand from the Japanese market has not yet recovered from the March earthquake and that the US economy has recovered. The speed is still very slow.

Prior to IDC, there were also several market research institutions or industry players who looked at the chip market in 2011, including Nomura Securities (predicted market growth rate of 4.4%), TSMC (predicted market growth rate of 2%), and analysts of Carnegie Group. Bruce Diesen (predicts a market growth rate of 5%); well-known analyst Mike Cowan's linear regression analysis model predicts a growth rate of 8.1% in the wafer market in 2011.

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