Economic Woes Affect Semiconductor Market
Industry tracker IDC announced Wednesday, they have reduced their prediction of global expenditure on information technology, as they anticipate that the figures will only rise half percent from the economic disarray.
IDC did not commit to a November prediction that IT spending worldwide would increase 2.6 percent in 2009 and additionally noted that if exchange rate trends continue US technology exporters will have a financial beat down.
“The sharp economic downturn which began in 2007 is now affecting consumer and IT spending in a significant way,” IDC stated in a release.
“The semiconductor market, which was one of the first industries to be affected, remains in a state of turbulence.”
Overall declines in semiconductor shipments that are vital to all electronic devices signals indicate that manufacturers will be producing a smaller amount of gadgets for the market, says to IDC.
IDC anticipates that the semiconductor market will sink 22 percent this year after falling two percent in 2008. The “abrupt slowdown” in chip shipments will hurt Asia, Europe and the United States.
IDC predicts that the worldwide semiconductor market will continue to decline until 2010.
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