Recent developments in the global semiconductor industry

Seasonal semiconductor purchasing and hoarding has launched Crest investment bank Pacific Securities believes that the electronic device manufacturers in order to meet the fourth quarter sales season, had begun before purchasing and stockpiling of semiconductor, this is certainly good news for chip suppliers. Before the chip inventory level is not high, and the final performance of robust demand, TV and mobile phones are quite promising. In the second quarter, the average price of semiconductors decreased by 7% in the first quarter, but an increase of more than the same period last year, 5%. The average rate of price is usually a season or two before the leadership of industry capacity utilization fab, the average price of semiconductor products two fell before the cycle, which is 2000 to 2002 and from 1995 to 1997, once fell rapidly in this period, capacity utilization level has stabilized, so the the company believes that the average price decline, the cycle is not so big as before.

2. The average annual growth rate of the semiconductor industry over the past ten years is less than 5%

According to Morgan Stanley report, the compound average annual growth rate between early at between 15% to 20% of the global semiconductor industry for ten years, but this is no longer a good day; in fact, from 1996 to 2005 years, ten years the average annual compound growth rate of less than 5%. The company estimates that, at best, the average annual growth rate of the next ten years should be only about $10%, though not as high as it was before, but as much as twice as much as the global economy.

3) foundry wafer demand will be significant recovery in 2006

According to a report released by the Semico Research, the company said the global foundry wafer in 2005 annual demand slump, but this market will have a significant recovery in the year 2006. The company forecast will grow 10% this year, far less than 31% of last year's high growth next year; some of the more traditional non OEM products, such as memory and microprocessor, the more demand is expected to drive the 2006 annual foundry market growth of 23%. Semico forecasts the next five years, the average annual growth rate is expected to reach 14%, although not comparable to the past 10 years, but still higher than the overall semiconductor market. Semico believes that an important shift in the next few years will be that the market will shift from a PC centric electronic marketplace to a connected and portable market. The company reaffirms that media hub will be the next killer application that can meet the needs of all digital content connections.

4) the main producers to increase the price of the wafer products behind the process

According to EE Times, the world's leading semiconductor foundries have raised the price of some of the more advanced process technologies, including 0.35, 0.25 and 0.18 micron. The main reason for the rise in prices is to take product-by-product and customer-by-customer approach. Semico Research analyst warned that, from the current situation, the more advanced 130 nanometer metric wafer may also rise. Before the generation of industrial workers have been reluctant to invest in some of the relatively backward technology equipment, but there are a number of emerging market demand, so that they have the opportunity to raise the price. TSMC, Manufacturing, and Chartered Semiconductor are said to have such plans.

5) digital signal processor is expected to grow 10% to $23 billion this year

Market research firm Forward Concepts believes that the global semiconductor market in 2005 is expected to grow from 6% to 8% in the second half will be quite strong performance. The digital signal processor market is relatively optimistic, this year is expected to grow 10%, reached $23 billion, growth rate higher than the overall semiconductor market; the company predicted that this year the semiconductor market value of about $226 billion.