Currently profitable global semicon industry needs to remember lessons of downturn!

By _Pradeep's Point!

March 18, 2010

Early this week, iSuppli reported that the global semiconductor industry is currently at its ‘most profitable level in a decade.’ So, I asked iSuppli whether it was too early to call the semicon industry most profitable, given that we’ve survived the worst downturn and the fact that lot of capacities are being built up? However, this is indeed a noteworthy performance.

According to iSuppli, ‘The overall semiconductor supplier operating profitability rose to 21.4 percent in fourth quarter of 2009, the highest level since the fourth quarter of 2000 when it reached 24.7 percent. Industry profitability soared in 2009, rising throughout the year after falling to negative 5.3 percent in the first quarter due to the impact of the global economic downturn.’

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