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Electronics industry is up to the challenges 2012 may present

There's good news for the semiconductor industry as 2011 comes to a close, with Gartner reporting global revenue of $302billion - a year on year increase of 1%.

However, much of this growth occurred in the early part of the year, boosted in part by the backlog from an exuberant 2010. And the report raises concerns about the strength of the macroeconomy which slowed equipment and semiconductor orders in the middle of the year. Consumers also held off purchases and infrastructure expansion plans languished as governments resisted assuming more debt. As 2011 progressed, equipment inventories began to build, resulting in ripples throughout the semiconductor industry.

Nevertheless, in the midst of an unstable economy, the revenue increase is a positive sign and one that should be celebrated. While 2012 looks set to be a difficult year, the electronics industry is well up to the challenge.

New Electronics wishes you a merry Christmas and a happy new year.

Chris Shaw

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