Market News

EL SEGUNDO, CA – Excess semiconductor stockpiles in the global electronics supply chain are likely to nearly triple this quarter, says iSuppli Corp. The research firm projects excess semiconductor inventories could balloon up to $10.2 billion in value, up 268% sequentially. This rise is having a deleterious impact on chip pricing, revenue and profitability, and could delay the semiconductor industry's recovery from the current downturn – even when demand rebounds, the firm says.

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TAIPEI, TAIWAN – According to recent data from CCID Consulting, China’s smartphone market experienced an increase in sales during the third quarter. Total sales came in at 18.17 billion yuan (US$2.54 billion). This marks a 4.5% increase in revenue.
 
A 0.6% increase over the second quarter resulted from 7.47 units being sold. Sales volume made up 19.3% of total handset sales in China. Nokia and Motorola made up 89.15% of the total market share.
NEW YORK – Research firm Gartner Group today sharply lowered its global semiconductor revenue outlook, saying the market would fall 16.3% in 2009 to $219.2 billion.
 
Last month, company guided for a 2.2% drop next year.
 
Semiconductor revenue is expected to drop 4.4% overall in 2008 on a fourth-quarter plunge of 24.4%.
 
If Gartner proves correct, it would be the first time the market fell in consecutive years.

Gartner forecasts a recovery in 2010 and 2011, with upticks of 14.6% and 9.4% respectively.
ARLINGTON, VA – Electronic component orders took a dip in November, although not nearly as drastic as the one in September, says the Electronic Components Association. The 12-month average, comparing this year’s results to those from 2007, continued the slight descent that began this summer.

Global reports show bleak projections in 2009 for key products that contain electronic components, including automobiles, computers, cellphones and PDAs, says the ECA. One hint of future light came from Henderson Ventures, which predicted that PC shipments would jump more than 13% in 2010 as a result of a combination of economic recovery, replacement cycles, and technological advances such as USB 3.0.
 
“It’s going to be a matter of sticking to fundamentals,” says Bob Willis, ECA president. “I believe companies must not overreact to or be intimidated by issues beyond their control, but remain focused on their core businesses.”
TAIPEI -- Foxconn Electronics reported November revenues rose 1% year-over-year to NT$134.9 billion (US$4.05 billion). Sales were down 20% from October, however.

The ODM company's year-to-date revenues hit NT$1.35 billion ($40.6 billion), up 24.22% year-over-year. 

Foxconn Precision Components, a company subsidiary which makes chassis and enclosures, reported November consolidated revenues rose 53% to NT$19.55 billion (588 million). Year to-date, the group's revenues are a reported NT$147.42 billion ($4.4 billion), up 22% over last year.
In a report, the sales hike was credited to demand for game consoles, which grew 40% month-over-month.

HILLSBORO, OR and HIGH POINT, NC – TriQuint Semiconductor Inc. has relocated its North Carolina Design Center to a larger facility in order to accommodate its expanding handset business. More than 25 employees will be added to the facility, which employed a staff of one when it opened two years ago.

"We are excited to move into the new facility as it represents our past success and promising future,” says Darrell Epperson, manager. “The facility has state-of-the-art equipment to complement our strong RF engineers in developing world-class solutions for our growing customer base. It’s rewarding to see the latest phones rely on TriQuint technology to optimize their talk time and battery life.”

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