Chip market seen contracting again in 2013

Rick Merritt, EETimes
2/5/2013 7:10 PM EST

SANTA CLARA, Calif. – The semiconductor industry will contract by 0.5 percent in 2013, but despite the squeeze and some consolidation the long-term outlook for growth remains strong, said Handel Jones, a veteran market watcher, speaking at the annual Common Platform event here Tuesday (Feb. 5).

Sluggish foundry revenues this quarter are a good indication of softness in the overall chip market through June, said Jones. “We think the third quarter will be stronger, then Q4 softens a bit, so we’re conservative this year. But things could change if the price of memory declines,” said Jones, chief executive of International Business Strategies (Los Gatos, Calif.).

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