TSMC sees 2 percent growth for 2011 chip market

NEW TRIPOLI, USA: "Leading foundry Taiwan Semiconductor Manufacturing Co. Ltd. has run its economic models and reduced its estimate for global semiconductor market growth in 2011 to 2 percent, from a previous estimate of 4 percent." EETimes May 11, 2011.

Yesterday, we sent you an Insight article about how our Leading Indicators are pointing to a mid-year economic slump (reproduced below). We never divulge what companies subscribe to our Proprietary Leading Indicators, but perhaps the Insight such as what TSMC is able to garner form its economic models can similarly be obtained from a subscription to our Proprietary Leading Indicators.

Our monthly leading economic indicators are pointing to a psooible weakening of the global economy in mid-2011 resulting in a slowdown in semiconductor revenues. Personal consumption would remain sluggish in the second half of 2011 because of a jobless recovery, further deterioration in credit, and continued weakness in home prices.Source: The Information Network, USA.

The US is the largest consumer electronics market. In 2010, 20 percent of the global consumer electronics revenue came from purchases in the US/Canada, followed by Western Europe with 19 percent. Weak consumer demand in 2011 would translate to weak chip sales.