Chip market is beginning to hum again!

Future Horizons has released the May WSTS results today on the global semiconductor industry, which indicate that the chip market is slowly starting to buzz again.

Malcolm Penn, chairman and CEO, Future Horizons, points out that as shown in May's WSTS results, March's sale figures romped home with a vengeance – reversing February's lacklustre performance – with IC sales up 10.8 percent on February and 8.2 percent on the same time last year.

More importantly, the ASPs were up 13.3 percent on February and 2.1 percent on March 2007.

While the increase on February 2008 is merely part of the normal month 3 versus month 2 quarterly patterns, the increase over the same period last year is much more statistically -– and structurally -– significant.

"Finally, the chip market is starting to hum. Now is NOT the time to cut back on the 2008 forecast," he adds.

Now then, why is the chip market exactly humming? What's actually happened? Well, nothing specific! It is merely an overall step-by-step general improvement in everything, helped along by the normal seasonal improvement in business in the second half of the year.

So many forecasters and firms have their own forecasts. What happens now if some of these forecasts are cut or revised? Will that affect the market overall market? The answer is simple -- a forecast is simply just that -- a forecast -- not fact! Penn says, "The market will judge whether the other forecasters' analyses of the market were right, as it wll indeed judge whether we are right too!"

Earlier, I had blogged about Future Horizons forecasting 12 percent growth in 2008 for the global semiconductor industry. Keep an eye on that one!

Further, have the ASPs stabilized, as those are indeed a dodgy lot? Penn feels, "We believe yes, although, there will still be the normal month-on-month variations and wobbles."

I shall continue this story in my next blog... so keep reading folks! My very warm regards and thanks to all of you who do stop by to read and comment.