Chip fab manufacturing equipment forecast declines are a second-stage market signal (after fundamentals like silicon bar stock prices) that the supply side is contracting significantly. Bankruptcies and M&A among the panel manufacturers has already begun, and this will contribute further to sopping up excess capacity supply.
This means downward pressure on pricing will begin to ease off. Offsetting this (and my own prediction) is that price decline and margin compression will continue through 2012 because demand is softening at the same time due to economic and political uncertainties in the world market, but the rate of decline will moderate.
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