BANGALORE, INDIA: It is really difficult to stick your neck out and predict. That's what makes the analyst's jobs so difficult. Things happen and pass you by so quickly. For instance, who would have thought that Samsung would face a substantial blackout that would halt six chip production lines in a complex operated by the world's largest flash memory producer? The year 2008 is the year of presidential elections and the Summer Olympics. Will we really see a recession in 2008?

Here are some of the trends that visible for 2008. We'd love to hear from you.

1. Semiconductor firms may have to face a recession year in an election year

Yes, strange as it may sound, this just might happen! Concerns about consumer spending, caused by higher oil prices, mortgage crisis in the US and fears of a possible recession have made analysts more cautious, albeit optimistic. Analysts are wary of an impending recession in semiconductors. That, it should fall in the year of the US presidential elections makes it all the more intriguing. The nervousness is already showing in the slowing down of some markets.

2. DRAM market looks weak in 2008

Will DRAM prices rebound? Remains to be seen, although DRAMeXchange says Taiwanese suppliers are likely to have their output to trim by 10-25 percent during February (Chinese New Year) as they usually plan for an average of 3-7 days of annual facility maintenance during this period. DRAMeXchange regards this as a possible catalyst for a price rebound in near term. Analysts haven't helped either, with some saying DRAM will be on the slow side or even negative in H1-08.

3. NAND market will remain hot

You can bet, it will! Analysts remain upbeat for a positive NAND market in 2008. The reason being – new applications such as wireless USB, increase in cell phones memory capacities, higher content in portable media players, etc. We hope it is not a flash in the pan. There are rumors of another iPhone along the way!

4. Power will remain major issue

This isn't going to change anytime soon! Power awareness is crucial for portable applications. It determines battery lifetime, and there's an increased amount of computation involved as well. Power awareness is extremely crucial for high-performance applications. It determines cooling and energy costs. Many chip designs today are power limited and still require maximum performance.

5. EDA has to catch up

And fast! Analysts at a recent webcast hosted by Semiconductor International elaborated how the EDA industry was in a position of lag in the market. The DFM issue is increasingly becoming  more complex. There is said to be a move to restrict the design rules that is in place now for 45nm. We are likely to see major changes in 32nm. That will have an impact on the EDA tools.

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