Worldwide chip market faces 2003 slowdown, says Semico

Semico’s inflection point indicator signals semiconductor slowdownSemico Research Corp. has revealed that the Semico Inflection Indicator (IPITM) signals an impending slowdown for the worldwide semiconductor market. The IPITM has been negative for three consecutive months, between December 2002 and February 2003, indicating instability in the industry. The Semico IPITM forecasts the market six to nine months in advance, and gauges the strength and stability of the industry. Historically, the IPITM has been an accurate warning sign for an imminent slowdown, as well as a recovery. Semico cites a lagging economy, fears from the deadly SARS virus and the war in Iraq as factors contributing to a downward trending IPITM, and all have curtailed the apparent signs of growth seen in early 2003. Semico believes a 4 month negative IPITM trend would provide a clear indication that the semiconductor industry will experience weakness in 3Q03 and 4Q03. Source: PCBnewsline