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China, Chips, and 2019 Still Unclear

IC Insights shares forecasts at a dark moment

By Rick Merritt, EETimes
January 25, 2019

SUNNYVALE, Calif. — Amid big uncertainties over China and European trade and the bottom of the memory cycle, veteran analyst Bill McLean predicts that the semiconductor industry will slow down over the next two years before picking up steam again. Long term, don’t worry about China, he advised in his annual Silicon Valley talk.

Specifically, the president of IC Insights forecasts 1.6% revenue growth this year and a 0.9% contraction next year, followed by three years of rising growth in the 7% to 13% range. His views are in the ballpark of analysts from Gartner and VLSI Research, who expressed hopes earlier this month that the industry’s current slowdown will avoid a recession.

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