The outlook for semiconductors is so negative that an industry group said Wednesday it expects global chip sales to decline in 2009 -- something not seen in eight years.
The Semiconductor Industry Association estimates that chip sales around the world will fall next year to $246.7 billion, down 5.6% from this year's anticipated sales of $261.2 billion. Sales this year will be up about 2.2% from 2007.
The association said if its 2009 forecast turns out to be accurate, it would be the first time chip sales have declined since 2001, when the market collapsed following the dot-com bust. That decline was due to excessively large inventories, which the San Jose, Calif.-based trade group said is not a factor in the current market.