This Week in EBN Daily News Digest Print Archives Search Electronics Industry News Broadcast Business Semiconductors Supply Chain Mgmt. Barely halfway into what many industry forecasts projected would be a four-year expansion, semiconductor companies are staring at the possibility of a long downturn and wondering when the market will swing up again. This week, several top chip makers, including No. 1 microprocessor supplier Intel Corp., further muddied the waters by announcing sharp declines in first-quarter sales. Their announcements helped douse expectations that a turnaround was possible within the next two quarters. I don't see any sign of recovery yet, said Andy Bryant, Intel's chief financial officer.
Nothing gives a lot of hope yet.
Some observers are still clinging to the belief that the electronics industry will begin to see a steady uptick in sales by the end of the second quarter, although that group is dwindling fast. By the end of this week, a number of industry executives, citing poor demand visibility, were declining to provide sales forecasts. We don't have the visibility to be able to predict when this softness will abate, said Henry T. Nicholas III, Broadcom Corp.'s president and chief executive, in a statement. There's no doubt that the electronics industry is witnessing a major revenue erosion that could hurt margins and profits and propel the industry into an unforeseen funk. To some industry observers, the current inventory overload at distributors, EMS providers, and OEMs means expectations of an immediate upswing may be unrealistic.