Simulation IC and transistor market situation stabilised
                                                                          Release time ：2009-05-03

   According to iSuppli company, though global simulation IC and transistor market situation stable demand rose and falling prices slowed, but distance real industry recovery is still very far away. Simulation IC and transistor manufacturers report, following the 2008's fourth quarter and in the first quarter of 2009, after new orders slowed almost to a standstill in demand picking up. This has helped the price level to stop in danger from falling further.

Global simulation on-chip circuits semiconductor average contract price will drop 3.9 percent in the second quarter than in the first quarter, a drop of 7.9% and 2008 when the 4.7% in the fourth quarter. As demand before Christmas and is expected to continue to increase the price will be a slight rebound in the third quarter, up 0.7%.

The average price is expected to decline in the second quarter, transistor fell 3.8% significantly lower in the first quarter of 2008, when 9% and the fourth quarter when 7.3%. In the third quarter is expected to drop will shrink to 0.2%, only slightly in the fourth quarter fell 0.04%.

This illustration shows the global simulation and division of components of the average price change prediction.

Since transistors and on-chip circuits semiconductor is common elements, can be used in various kinds of electronic products, thus its sales may act as a barometer of electronic industry trends. So, the above situation can be interpreted as a sign of the electronics industry overall positive. However, the price movements of these elements have also been transistors and simulation on-chip circuits internal factors that influence the semiconductor market.

Inventory level is the influence industry price trends in 2008, a major factors have swelled to excess degree. Although the first quarter demand downturn, but electronic supply chain managed to slashed inventory level. Investors think cut inventory is a positive signals, because when demand is starting to increase, must increase inventory, thus stimulating demand and stable prices.

Compared with many other semiconductor products, analog on-chip circuits semiconductor and transistor inventory cannot be cut to a very low level. Due to demand now extremely limited visibility, so most suppliers must keep relatively high inventory levels, in order to respond to the demand picks up quickly.

Although demand is rising, but analog on-chip circuits semiconductor and transistor industry in 2008 to restore to the level of sales of the fourth quarter before, still has a long way to go. Simulation and divided components suppliers report says order sales ratio appear improving, but overall orders, low visibility still only two to three weeks, depending upon the customer and the final product.

Along with the simulation component and transistor sales growth, production, these components factory capacity utilization also will rise. Analog components and transistor factory capacity utilization in the first quarter dropped to about 40 per cent in the second quarter, is expected to go up to 60%. Capacity utilization rising, is expected to help stabilize simulation on-chip circuits semiconductor prices, even in the third quarter to the price rise.