Doom and gloom in chip market?

Global Semiconductor Industry

Doom and gloom in chip market?

Thanks to a dreadful mess in the US financial markets, the global semiconductor industry is clearly now sailing in uncharted troubled waters

Pradeep Chakraborty

Sunday, September 28, 2008

UK: According to Malcolm Penn, chairman and CEO, Future Horizons, July’s results continued the first-half year trend of ‘exceeding expectations’, yet the mood in the chip market is all doom and gloom.

The dreadful mess in the US financial markets and the demise of major institutions such as Bear Stearns, Lehman Bros, Fannie Mac, Fannie Mae, Merrill Lynch and AIG, to name but a few, with the repercussions washing over like a tsunami elsewhere, are clearly at the root of the ‘zero confidence’ frame of mind. The global semiconductor industry is clearly now sailing in uncharted troubled waters.

He says: "No one has any idea how this crisis will all end, or what the impact on the chip market will be. In the face of adversity, there are always two options, do nothing and hope for the best or get on with the job and keep moving forward."

According to Penn, this is the time to stop chasing fashion and get back to basics. "The good news being the industry basics are mercifully as good as they get back," he adds.

Keep the faith! This is still a good and dynamic industry to be in!

I will get into a detailed discussion with Malcolm Penn next week.

©CIOL Bureau