Continued demand for communications and portable computing devices with innovative new features will drive purchases this year and help to boost sales of the semiconductors used in these products. This was the perspective of Semico president, Jim Feldhan, in opening remarks at today’s 10th annual Semico Summit Executive Conference.
In his presentation, titled, “End-Use Market Drivers Create Opportunities”, Mr. Feldhan focused on a wide range of end-use products that will moderate the impact of the economy on semiconductor demand. Semico sees continued strong demand for communications and portable computing devices influenced by three factors: cell phones are adding computer-like functions; handheld devices are being designed with wireless connectivity; and high-end cell phones and notebooks are converging.
“New innovations will help drive semiconductor demand,” stated Feldhan. “High-definition screens, Blu-Ray and HD DVD and Flash-based camcorders, and full-featured pocket-sized mobile PCs are just a few of the products on the horizon.”
Overall, Semico expects total worldwide semiconductor revenue shipments will reach $262 billion, a 5.8-percent increase from last year. Pricing pressures continue to impact the semiconductor market, and the competitive market, with declining average selling prices (ASPs), is expected to continue at least through the first half of the year. Lower capacity utilization and inventory concerns about the Flash and the cell phone markets will contribute to moderate growth this year.
The U.S. economy is uncertain: After a weaker-than-expected fourth quarter reading on productivity, questions still remain about fundamental economic issues. There are lingering inflation worries, rising oil prices, and continued weakness in housing and production. On the other hand, the dollar is up versus the yen, worker productivity rose, and wages soared.
Mr. Feldhan’s presentation was the first of a full-line of speakers during the executive conference being held March 11-13, 2007 at the Camelback Inn in Scottsdale, AZ.
Semico Research Corp is a marketing and consulting research company located in Phoenix, Arizona. Semico was founded in 1994 by a group of semiconductor industry experts. The Company has improved the validity of semiconductor product forecasts via technology roadmaps in end-use markets.