Gartner more optimistic about 2008

“It was widely assumed that the slowdown in the US economy that began in mid 2007 would reduce demand for electronics goods and, by extension, semiconductors in 2008,” said Richard Gordon, research vp at Gartner. “However, while we are still forecasting low single digit growth for the semiconductor market in 2008, this has more to do with supply side factors than weakness in demand.” Gartner’s analysts said there have been no signs of a significant slowdown in the markets for digital consumer electronics products and automotive electronics, demand for which could be expected to be affected by cutbacks in discretionary spending by consumers. However, Gordon said: “A leading indicator we are concerned about is the level of semiconductor supply chain inventory, which has increased in the past three quarters. If this trend does not show signs of reversal in the second quarter of 2008, then it may be a sign that demand is faltering.”