The global semiconductor market is expected to stage a quick recovery after hitting bottom in the first quarter of 2012, Silicon Precision Industries (SPIL) chairman Bough Lin said during a February 15 investors conference. The market will continue its rebound through the third quarter, according to Lin.Packaging and testing houses including SPIL are seeing their clients start to replenish inventory, said Lin, adding that the demand will strengthen between mid-February and March.
Lin pointed out that the global economic conditions will improve generally in 2012. The impact of Europe's debt crisis on the world economy will not be as significant as that in 2011, and the US continues on its path toward economic recovery, Lin said. With a more favorable economic climate for 2012, companies should feel more optimistic about the outlook for the semiconductor industry, Lin noted.
TSMC and several research firms seem to be too cautious in their industry growth forecasts, Lin observed. Rebound is taking place earlier than expected, meaning growth for 2012 should be higher than their estimates of 2-3%, Lin indicated.
However, lower ASPs caused by price competition could drag down the chip industry's production value growth to low single digits in 2012, according to Lin. To mitigate the impact of falling prices on company gross margin, SPIL will continue to improve its product mix, said Lin.
SPIL has reported NT$1.17 billion (US$39.7 million) in net profits on revenues of NT$15.71 billion for the fourth quarter of 2011, showing on-quarter declines of about 20% in profits and 3.8% in revenues. The firm expects revenues to register another 3-7% sequential decrease in the first quarter of 2012, with both gross margin and operating margin down slightly.