MW Quarterly Archive
From Our Market Blog
Vol. 2 No. 4, Fall 2008
Understanding Why Macro Economics is a Driver for the Electronics Industry
News of financial market gyrations has an impact beyond the effect on individual savings or the ease with which businesses can obtain credit. The type of volatility we have experienced from the global arena to within sectors of the Electronics Industry lends valuable insight to the structure of our industry. And, put in practical terms, informs strategy and demand forecasts. For this reason, we can explore the trends and look at the volatility as a testing ground for determining which correlations are real versus spurious, and then gain new insight into how the significant growth in the Electronics Industry has changed the dynamics of our market sectors.
Read more: Understanding Why Macro Economics is a Driver for the Electronics Industry
The IC Landscape and Sector Implications during the Economic Downdraft
Given the fundamental position of ICs to the Electronics Industry, understanding the strength and diversity of IC sectors and markets is critical to forecasting and understanding current and approaching trends. Additionally, these relative sector strengths are and will continue to dictate IC demand. While a number of sectors continue to be down due to the weak consumer confidence and global economic downturns, and memory ASPs continue to be troubling, there are silver linings as well as important growth opportunities within the IC landscape.
Read more: The IC Landscape and Sector Implications during the Economic Downdraft
Will Reworked Balance Sheets Rebalance the Power in the Semiconductor Supply Chain?
Foundries may seem like an ocean away from the monthly and quarterly machinations of today’s volatile consumer market, but this is not the case. While the downtrend in capital expenditures (CAPEX) by semiconductor suppliers predates this year’s wild global economic ride and the past two years’ memory market collapse, the foundries’ new spending strategies have only been strengthened and further entrenched due to recent events.
Read more: Will Reworked Balance Sheets Rebalance the Power in the Semiconductor Supply Chain?
Can BRIC Pave the Road to a Rebound? India's drivers of growth and dreams of a design future
Short term promise for semiconductor growth is hard to find in any the world’s developed economies. The BRIC (Brazil, Russia, India and China) countries have enjoyed the spotlight in recent years due to their rapid growth as manufacturers and consumer markets. In the ongoing economic downturn these countries continue to grow, albeit at a slower pace due to global macro economic effects.
