| |
| |
![]() |
| |
|
| |
|
| |
|
SINGAPORE: Falling consumer demand in major markets such as the US and the global economic slowdown have seen growth in the semiconductor industry cut by as much as half.
Chartered Semiconductor's rating outlook was downgraded to negative by rating agency Moody's in September, and chip maker AMD has shut down its testing and assembly facilities intermittently in the past week.
Given the current market conditions, market watchers say it may make business sense for firms in Singapore to halt operations in response to the slowing demand.
President of MIDAS, Ulf Schneider, said: "A typical reaction is to slow down the production output of the manufacturing capabilities. It might lead to a step where certain assets might even get divested to other partners."
It will be hard for growth in markets such as China and India to replace the fall in demand from markets such as the US.
Vice-president of Frost & Sullivan, Sanjay Singh, said: "Yes, billion plus people in both the countries, but if you look at the actual consumption, especially of electronic devices, PCs and mobile phones, the rates have gone up increasingly, purchases have gone up drastically, but in the overall scheme of things, it's far too little to counteract the slowdown in the US."
Observers point out that growing pressure on Singapore's semiconductor sector could be due to increasing competition from markets such as China, Taiwan and India.
Further downgrades and suspension of operations are likely to continue until US demand recovers.
- CNA/yt
|
