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PC pressure to hit Asia chip and LCD prices

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PC pressure to hit Asia chip and LCD prices

Global semiconductor shipments were up 11.9 per cent in June, compared to one year earlier, according to analysts in Japan. However, the uncertain and increasingly competitive PC market is squeezing prices for chips and LCD displays from major manufacturers in Japan, Korea and internationally, and this trend is expected to strengthen in the second half, regional observers say.

Generally, sales of chips and components to mobile phones makers have been considerably healthier than sales to PC makers over the past three months, technology industry analysts in Asia note.

Nomura Securities analysts in Tokyo are expecting a general slowdown in the semiconductor market in the second half of the year, due to inventory build up at contract chip makers and stronger price competition in the PC chip market. Chip makers with the resources to put pressure on their competitors during this period have a chance to gain market share, Nomura predicts.

More : vnunet.com

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