NEW TRIPOLI, PA – The semiconductor industry business outlook is weakening, says The Information Network.

Booming sales of PCs and other electronics are unsustainable, and their inevitable fall will impact the entire semiconductor supply chain, including DRAM manufacturers, microprocessor makers and foundries, according to the research firm.

 “The hyper-growth already exhibited through the first half of 2010 cannot be sustained because the poor macroeconomic climate could not support 50%+ semiconductor growth,” said Robert Castellano, president of The Information Network.

Indicators show a market correction is looming, the firm said, with some signs pointing to a repeat of the correction that began after 2000.

“2010 is becoming very reminiscent of 2000, where poor inventory control, fear of IC shortages and concern over long waiting times for leading-edge equipment spelled disaster, and we ended the year with $10 billion in excess IC capacity and a shattered equipment industry that took years to claw out of the red and never fully recovered until this year,” Castellano said. “Semiconductor sales are intimately tied to the economy, and there is a direct correlation between semiconductor sales and GDP.”

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