Chinese demand for semiconductors to fall, analyst warns

China's demand for semiconductors will shrink by nearly 6 percent next year, iSuppli warned on Friday.

Chinese demand for semiconductors will fall nearly 6 percent this year, according to market analyst iSuppli, adding to the growing evidence that China's economy will not be a haven for companies seeking shelter from the economic crisis.

China's semiconductor market will shrink by 5.8 percent to US$72 billion, or more, in 2009, down from $76.5 billion in 2008, iSuppli said. Globally, the market analyst expects semiconductor sales to contract by 9.4 percent.

Looking ahead, iSuppli expects to see the Chinese semiconductor market resume growth in the future, with a forecast of 9 percent growth in 2010.

China isn't the only market that faces downturn in demand for chips. Intel, the world's largest chip makers, last week declined to release an earnings forecast for the first quarter, saying it had limited visibility into what customer demand will be like during the period.

In previous economic downturns, China was a market that semiconductor companies could count on for growth, even as markets elsewhere faltered. For example, following the dot-com crash of 2000, Chinese demand for chips grew by 24.4 percent, while global demand slumped by 28.6 percent, the firm said.

China's economy, which relies heavily on exports for growth, has shown itself to be more vulnerable to the current economic downturn than many expected. IDC this week announced that Asian PC shipments declined for the first time in ten years during the fourth quarter, citing weaker-than-expected demand from Chinese consumers as a principal reason.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Chinasemiconductor

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sumner Lemon

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?