The already slow market for microchips made by Intel and many other Silicon Valley based companies just got a little more sluggish. Or so says the market-research firm IHS.
“Amid increasingly weak economic conditions that are depressing consumer and business spending on electronics, IHS is downgrading its forecast for the global semiconductor market in 2012, with revenue now expected to decline by 2.3 percent for the year,” the firm said Monday.
IHS said it expects global chip sales to total $303 billion in 2012, down from $310 billion in 2011. That’s a bigger drop than the 0.1 percent decline it had forecast in August and the 1.7 percent reduction it predicted in September.
But the prognosis remains the same, it added, noting ” this will mark the first annual decline for the global semiconductor industry since 2009.”