Semicon equipment market recovery will be U shaped!

NEW TRIPOLI, USA: The semiconductor equipment market’s recovery, which we pointed out yesterday appears to have begun, will exhibit a U shaped trend, based on proprietary leading indicators, according to the report “The Global Market for Equipment and Materials for IC Manufacturing,” recently published by The Information Network.

“Our proprietary leading indicators, which determine inflection points in economic activity and which we utilize to show turning points in semiconductor equipment sales have turned positive for the past three months and are exhibiting a U shaped growth so far,” noted Dr. Robert N. Castellano, president of The Information Network.

“Based on past cycles, there is a corresponding shape to the semiconductor equipment market, so we postulate that the growth will also exhibit a U shaped behavior.”Source: The Information Network

For 2009, we forecast that the semiconductor equipment market will drop 46 percent. Most importantly, based again on our proprietary leading indicators, growth will continue through 2012, increasing 20 percent in 2010 and 49 percent in 2011.

“Objective, concrete evidence comes from the positive activity in our proprietary leading indicators in the US. Both our long and short indicators turned up in late 2008, pointing to a business recovery cycle and giving visibility that the days of the recession are numbered,” added Dr. Castellano.

As the recession eases, companies and consumers will unleash pent-up demand and make the electronic purchases driving the semiconductor market, which has already turned positive.