Intel, AMD, Samsung Affected as Chip Sales Dive Globally: IDC

By Nicholas Kolakowski 2009-02-26

Intel, Advanced Micro Devices, Samsung and other chip providers have been hit by the economic downturn in a hard way, as research firm IDC expects a 22 percent decline in global semiconductor sales this year. According to IDC, the semiconductor market was one of the first affected by the recession that began in late 2007. In 2008, revenues from semiconductors declined 2 percent. The trend will only accelerate in 2009, fueled by massive declines in the key areas of unit shipments, low utilization rates and price erosion. "The semiconductor industry downturn will be prolonged by macroeconomic uncertainty this year," Mario Morales, vice president for Semiconductor Research at IDC, said in a statement. "With demand visibility low, utilization rates at frozen levels and supplier inventories growing because of deteriorating demand targets, IDC does not expect year-over-year growth for semiconductor revenues until the second quarter of 2010."

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