The head of a major body in the semiconductor industry has claimed that it is better placed to deal with the effects of recession than other PC-related sectors, the BBC reported yesterday (2nd March).

Malcolm Penn, Chief Executive of analysts Future Horizons, has explained that the industry was already cutting back on production in order to drive demand and may escape the worst through "purely good luck".

Furthermore, he noted that the impact of the financial crisis is likely to spur companies to work harder to provide innovative solutions in the chip industry when other sectors are floundering.

He told the news provider: "When things go wrong like this, the chip industry actually goes into full gear, doing what it does best - which is inventing itself out of the problem.

"This is a good time to restructure, to do the things that you never bother to do when things are humming along."

Mr Penn added that this approach will benefit consumers in the sense that the next generation of chips will arrive sooner, even if demand is only edging up slightly in the current climate.

However, some commentators have offered an alternative view, suggesting that semiconductor manufacturers are facing up to a crisis as a result of dwindling sales figures.

The latest data from the Semiconductor Industry Association reveal that chip sales stood at $15.3 billion in January, representing a decline of almost a third on a year-on-year basis.

With Hewlett Packard reporting computer sales falls of 19 per cent and Dell seeing desktop sales decrease by 27 per cent, research firm Gartner believes PC shipments will slump by 12 per cent to 257 million units this year.

"This is the worst recession the semiconductor industry has seen since its inception," said Sean M Maloney, Chief Sales and Marketing Officer at Intel.



Sources:

PC sales face 'worst-ever slump' (02/03/09)
http://news.bbc.co.uk/1/hi/technology/7918621.stm

Chip Makers Watch Sales Fall Sharply (02/03/09)
http://www.nytimes.com/2009/03/03/technology/03chip.html?_r=1