Supply? Tight. Demand? High. Bill McClean forecasts a good year for ICs

May 17, 2011 — Bill McClean, IC Insights, discussed supply and demand in his ConFab keynote. Here, he explains that demand is good for the IC industry, thanks to smartphones and tablets. Supply, on the other hand, is relatively tight. IC Insights is forecasting 10% growth for the semiconductor market in 2011.

McClean’s forecasts:

  • Capital spending increase this year: 19% (good increase, but not excessive)
  • Unit volume: 9-10% growth
  • Average selling price (ASP): 1% increase

McClean also spoke about seismic influences during the keynote. The seismic risk has always been huge for semiconductor manufacturing, McClean notes, as production (66% of global production, 90% of foundry activity) has always taken place in seismically active areas.

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