WSTS cuts 2005 chip sales growth forecast

The World Semiconductor Trade Statistics (WSTS) has cut its growth forecast for the semiconductor market to 1.2 percent in 2005, a sharp slowdown from this year's expected rate of 28.5 percent.

After all the reports of weaker-than-expected demand and inventory accumulation by semiconductor companies, this isn't too surprising. Even Taiwan Semiconductor Manufacturing and United Microelectronics Corp, the world's largest contract chip makers -- which had reported good quarterly profits and record sales in the past few months -- have recently projected weak outlooks, while third-ranked Chartered Semiconductor now looks likely to make a loss in the fourth quarter.

The semiconductor cycle appears very much to have turned.