Global Semiconductor Capital Spending To Decline In 2016: Gartner

Posted: Jul 25 2016, 5:01am CDT | by , in News | Latest Business News


This story may contain affiliate links.

Global Semiconductor Capital Spending to Decline in 2016: Gartner
Photo Credit: Getty Images

Don't Miss: This How to find Fingerlings in Stock

Worldwide semiconductor capital spending is projected to decline 0.7 percent in 2016 to $64.3 billion, market research firm Gartner said on Monday.

The figure, however, is up from the estimated 2 percent decline in Gartner's previous quarterly forecast.

"Economic instability, inventory excess, weak demand for PCs, tablets and mobile products in the past three years has caused slow growth for the semiconductor industry. This slowdown has driven semiconductor device manufacturers to be conservative in increasing production," said David Christensen, senior research analyst, at Gartner.

"Looking ahead, it appears the second half of 2016 may see improved demand. However, following Brexit, semiconductor inventory levels may rise in the third and fourth quarters, which could lead to reduced production volumes," he added.

In its analysis on the outlook for the semiconductor market, Gartner lowered the PC, ultramobile (tablet) and smartphone production forecast for the second half of 2016 compared to 2015.

Memory revenue growth for 2016 has also been revised downward compared with the previous forecast due to a weaker pricing outlook.

"This will dramatically affect the competitive landscape of the global semiconductor manufacturing in the next few years as China becomes a major market for semiconductor usage and manufacturing," Christensen added.

Holiday Gift Guides and Deals

Get your Holiday gifting inspired by Best Toy Gifts with High STEM Value and the Top 10 toy gifts under $10 if you are on budget. The most popular Holiday 2017 toy list include Fingerlings, Crate Creatures and more. Don't miss the new Holiday deals on Amazon Devices, including $29.99 Fire tablet.

This story may contain affiliate links.

This free App Solves You Holiday Shopping Problem

Download the free Tracker app now to get in-stock alerts on Fingerling, Luvabella, SNES Classic and more.

Latest News


The Author

<a href="/latest_stories/all/all/59" rel="author">IANS</a>
The Indo-Asian News Service (IANS) was established in 1986, initially to serve as an information bridge between India and its thriving Diaspora in North America. Now IANS is a full-fledged wire agency, putting out news 24x7 from around the world.




comments powered by Disqus