Simulation and divided device: 2009 revenues will fall 29%
                                                                         Release time ：2009-02-20

According to iSuppli company, the fourth quarter with global simulation revenues divided device market average fell 22%, makes a supplier is disadvantage.

About in the first quarter of 2009 preliminary prediction seems not so optimistic, maximum expected sales reduced by 20% during battles. ISuppli company annual sales are expected to decline in 2009 about 29.

Simulation and divided device suppliers in take various measures to cope with the difficult economic situation. Expected price will be significantly lower, simulation and divided manufacturers may be slowing down an average of 7% to 10%.

ISuppli company heard many suppliers issued the same comment to think: "there is no reason to depreciate, because there is no demand."

Some suppliers than other suppliers cut prices occasionally to digest much too, inventory, but this is not general trends.

Many factories reduces the production to adapt to the demand practically nonexistent. Capacity utilization in 2009, the fourth quarter dropped to about 40 per cent of the expected future months, will remain at this level.

Because industry atrophy and capacity utilization declining, iSuppli expects factory will appear integration. Although this difficult, but expected capacity will not shrink. Some semiconductor capacity will disappear, but not in the next two years leading to supply shortages.

The good side of this is expected in the third quarter of 2009, demand will rise modestly.

On the whole, more vulnerable than analog semiconductor division, mainly because many division semiconductor belong to homogeneous commodities.

The 2007 to 2008 in China, many suppliers market share did not change significantly. But, iSuppli company believe, because demand downturn will lead to many suppliers hard to realize the profit, supplier pattern in 2009 will change, many vendors will shaky business.