Tuesday, June 29, 2010

Watch for a slowdown in semiconductor equipment sales

Dr. Robert Castellano, The Information Network

NEW TRIPOLI, USA: Our global leading indicators are pointing to a slowdown in semiconductor equipment sales over the next few months. In fact, we may have already seen most of the growth in the equipment market for 2010, as our leading indicators are showing signs of flattening.

There is increasing concern of slowing global recovery. This is particularly evident from comments made at last weeks G20 meeting, particularly when South Korean president Lee Myung-bak noted, "If European countries proceed with their fiscal austerity plans, the global economic turnaround may slow down." Coming into the meeting, US officials had urged that leaders not move too quickly to cut fiscal stimulus, while many European officials, alarmed by Greece's financial crisis, put more onus on austerity.

It is obvious that the semiconductor equipment industry is now a function of what’s happening on a macroeconomic level. This has always been recognized in a down economy when a CEO will proclaim “it’s the economy, stupid!”, but not always noted in an up economy when the same CEO would announce “I certainly did a great job and that fat bonus check I got was well deserved.”

Clearly time will tell, and we will be the one’s telling it in advance, based on our time proven (since 1995) leading indicators.

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