Global chip sales are expected to decline from 5.1% to 0.1%

September 16 news, according to market research firm Gartner expects: this year's global chip sales will fall 0.1% to 299 billion US dollars. Gartner previously forecast that global chip sales will increase by 5.1% this year.

Gartner also lowered its global chip sales growth forecast from 8.6% to 4.6% next year on the grounds of deteriorating economic outlook.

Bryan Lewis, vice president of research at Gartner, said in a statement today: “There are three key factors that determine the short-term outlook for the chip industry: excess inventory, overcapacity, and weak demand due to a weak economy. The possibility of double bottoming continues to increase, triggering concerns that the chip industry's sales will decline further."

Gartner said on Sept. 8 that due to consumer spending cuts, global PC shipments will grow at a lower rate than expected in the current and next two years. Chip company's third-quarter performance expectations have been "well below the seasonal average."