Semiconductor Beat
According to Electronic News:
As the semiconductor end markets of computing and cell phone/handsets mature, the industry has been on a quest for the next “killer app” to drive double-digit growth for the industry.
High-end consumer electronics may just fill that void, according to Tony Massimini, CTO for Semico Research, who delivered his overview Wednesday in at a conference in San Jose of the multiprocessor market and the search for the next big area of growth.
Sure. Until the mortgage equity withdrawals dry up any chance the consumer had of buying high-end goods. Like LCD TV’s, for example.
One year needed for inventory correction, says Micronic: Sweden-based photomask maker Micronic Laser Systems estimates that it will take a year to correct the over-inventory issue that showed up in the flat-panel industry in the second quarter.
Makes one wonder: just who is this app going to kill?
Disclosure: William Trent has a long position in SMH.
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[…] This is a dangerous bid for unprofitable market share in the face of what one competitor calls an inventory glut that will require a year to correct. As we have said in the past, the right move for the industry is to push back production and capacity increases until demand catches up with supply. In light of a potential consumer slowdown, that may take longer than many realize. The author may hold a position in the securities discussed. A current list of the author’s holdings is available here. […]