Chip Sector To Face Tough Conditions In 2009 Warns Gartner

The semiconductor industry could experience another bad year in 2009 as it sees the second decline in gross revenues according to research firm Gartner.

Worldwide semiconductor revenue in 2009 is expected to shrink to $219.2 billion, a 16.3 percent slump from 2008 (when revenues are expected to reach $261.9 billion) and a whopping 21.41 percent fall since 2007.

The DRAM market - especially Semiconductor firms like Hynix or Infineon - is set to feel the full force of the economic slowdown and could force a number of weaker players either to shut down or to be forced into mergers next year.

Andrew Norwood, research vice president at Gartner, commented on the analysis saying that ''Infineon had a tough year as its memory subsidiary, Qimonda, which it is looking to divest, is becoming marginalised within the DRAM industry''.

Intel is still expected to lead the table with 13.1 percent of the market share, with nearly twice the revenue of second-placed Samsung at $34.2 billion, and is expected to diversify to reduce its dependency on chips only.

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