TSMC sees 2% growth for 2011 chip market
TSMC is like E.F. Hutton. As the largest chip foundry in the solar system, when they speak, everyone listens. After a global economic implosion that began in the 4th quarter of 2008, the chip market has recovered well over the past 4-5 quarters. In addition to the human tragedy, the earthquake and subsequent nuclear meltdown in Japan has created a speed bump in the recovery which will probably take 6-9 months to settle. Due to the temporary contraction in the supply chain this is resulting in some higher asps for wafers, materials, and chips.
Although no one wants to see a drop in business nor the suffering it caused, a correction in prices is the one respite for suppliers. But the economy, like water, will seek its own level. The worst of the 2009 implosion should be behind us. Now we look forward to the convergence of technologies that will enable new applications that will drive the next wave of growth.
