Semiconductor market becoming less forgiving, says iSuppli

Posted by Digitimes

Facing dwindling profits, fewer opportunities to expand by taking market share from competitors and a shrinking roster of star performers, the semiconductor industry has entered a period of lowered expectations and diminishing options, forcing chip suppliers to rethink their basic strategies for success, according to Suppli. "Semiconductor profitability has eroded steadily since mid 2004, with quarterly net profits having fallen into the single-digit range in 2008, down from the 17% to 19% range in 2004," said Derek Lidow, president and chief executive officer of iSuppli.

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