More evidence surfaced Monday indicating that the slowdown in semiconductor sales is continuing. Worldwide sales of semiconductors reached record levels, according to an industry trade group, but the rate of sales growth continues to drop. The industry is sorting itself out from the hypergrowth it experienced during the last two years. Sales in the Japanese market grew 47 percent from a year ago. Yet October sales just barely improved from the previous month.
Analysts now tend to believe that sales growth is sliding.
Chipmaker Altera already warned in November that sales would not meet expectations, and Xilinx said Monday after the markets closed that it would also miss forecasts for the current quarter. The chip sector has experienced tough times this year. The Philadelphia semiconductor index has fallen 59 percent from its March high. Yet Billy sees the downturn as positive. Inc. All rights reserved.