Semiconductor companies may be looking forward to a boom year in 2008, but first they’ll need to struggle through 2007—which is shaping up as anything but great. The beginning of January typically signals a seasonal slowdown in demand for chips used in PCs, digital cameras, wireless phones, and other popular consumer-electronics gadgets. And it usually takes two quarters for that demand to heat up again in anticipation of another tech-crazy holiday season.
We’ve been harping on this theme for months. The remaining question is how far ahead the market will look as the fundamentals (sales and margins) continue to deteriorate. The fact that mainstream media has taken notice may be another signal that it is (at least mostly) played out.