Signs Point to a Short Slowdown - IPI Ticking UP!

Phoenix, Arizona June 21, 2011 - The Semico IPI has been steadily declining since May of 2010. This indicates that the second half of 2011 and at least early 2012 will be a weak semiconductor market. Excess buildout in tablets, PCs and smart phones are leading our inventory concerns. Prices in some semiconductor categories have declined over the last two months, hurting revenue, although we have continued to see unit demand remaining healthy.

Adding to the short-term cautious outlook are the general economic indicators pointing to slower economic expansion for the balance of 2011. While semiconductor sales have bucked the macroeconomic trends in the past, today, with the pervasiveness of electronics throughout our economy, macroeconomics has a significant influence on the semiconductor market.

However, there are signs that this slowdown will be short. During the last two months the IPI has shown a slight uptick, providing a cautiously optimistic outlook for the second half of 2012. While two months of data does not guarantee a trend, we believe there are additional factors supporting this optimism.

The Semico IPI report is published monthly and includes the IPI as well an analysis of the data. Semico's worldwide semiconductor forecast is published in the IPI report once each quarter. The other two months include excerpts from recently completed Semico studies.

The IPI provides accurate and proven forward-looking predictions on the direction and strength of the semiconductor market twelve months in the future. Our June issue will be ready for shipment by June 30th and will contain Semico's midyear forecast.

To buy the June IPI Report as a single issue, or sign up for the entire year, contact:

Susan Cadel
607-368-7600
susanc@semico.com

About Semico
We are a semiconductor marketing & consulting research company located in Phoenix, Arizona. Semico was founded in 1994 by a group of semiconductor industry experts. We have improved the validity of semiconductor product forecasts via technology roadmaps in end-use markets. Semico offers custom consulting, portfolio packages, individual market research studies and premier industry conferences.