Feuerwizard
April 26th, 2004, 09:50 am
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This year is excellent for chip makers of all kinds. Intel and AMD reported revenue increase in Q1 and Samsung is the only manufacturer currently producing GDDR3 modules for it's video card clients - ATi and Nvidia.
Unfortunately, 2005 won't be as good for chip makers as this year, claims IC Insights Inc., a research firm based in Scottsdale, Arizona.
Next year chip sales are expected to drop as much as 6% globally, reports IC Insights. The two main chip companies, Intel Corporation and Samsung Electronics will be one of the many companies who will see decline in their revenue in 2005.
The research firm said in a report, next year's revenue will drop from $177.1 billion this year to $166.9 billion. The firm also reported that chipmakers will boost their spending efforts to $44.4 billion in the current year.
16 chip producing companies along with Samsung have budgeted to spend close to $1 billion in expansion this year. Chip sales have dropped drastically since 2000 and have caused various manufacturing firms such as Hynix to go into bankruptcy, confirms IC Insights' research.
This leads the research firm to believe that prices for consumer electronics that utilize chips will drop by 3% next year. While this is a good news for the consumer market, many companies will face some hardships. Intel confirmed their profits doubled and Samsung's profits tripled this year. This will not be the case next year as IC Insights Inc. concludes.
The research firm reports, the years 2006 and 2007 will follow with profits for the chip producing companies.
Intel or other chip producing companies have not confirmed the research conducted by IC Insights Inc.
This year is excellent for chip makers of all kinds. Intel and AMD reported revenue increase in Q1 and Samsung is the only manufacturer currently producing GDDR3 modules for it's video card clients - ATi and Nvidia.
Unfortunately, 2005 won't be as good for chip makers as this year, claims IC Insights Inc., a research firm based in Scottsdale, Arizona.
Next year chip sales are expected to drop as much as 6% globally, reports IC Insights. The two main chip companies, Intel Corporation and Samsung Electronics will be one of the many companies who will see decline in their revenue in 2005.
The research firm said in a report, next year's revenue will drop from $177.1 billion this year to $166.9 billion. The firm also reported that chipmakers will boost their spending efforts to $44.4 billion in the current year.
16 chip producing companies along with Samsung have budgeted to spend close to $1 billion in expansion this year. Chip sales have dropped drastically since 2000 and have caused various manufacturing firms such as Hynix to go into bankruptcy, confirms IC Insights' research.
This leads the research firm to believe that prices for consumer electronics that utilize chips will drop by 3% next year. While this is a good news for the consumer market, many companies will face some hardships. Intel confirmed their profits doubled and Samsung's profits tripled this year. This will not be the case next year as IC Insights Inc. concludes.
The research firm reports, the years 2006 and 2007 will follow with profits for the chip producing companies.
Intel or other chip producing companies have not confirmed the research conducted by IC Insights Inc.