The Street Loves Chips

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Some good news from TheStreet.com today, and it’s based not on recent activity but on data from 2008.

Semiconductor equipment sales will grow 20% in 2010 and 49% in 2011, the financial news site forecast today, citing (several times!) “proprietary leading indicators.”

In doing so, the site acknowledged recent announcements of sequential gains by semi gear makers. More interesting, however, was its reliance on data from three quarters ago, which show “turning points in semiconductor equipment sales.”

“Both our long and short indicators turned up in late 2008, pointing to a business recovery cycle and giving visibility that the days of the recession are numbered,” analyst Robert Castellano wrote.

Since chip sales are a leading indicator for electronics assembly, that’s certainly good to hear.

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About Mike

Mike Buetow is president of the Printed Circuit Engineering Association (pcea.net). He previously was editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He spent 21 years as vice president and editorial director of UP Media Group, for which he oversaw all editorial and production aspects. He has more than 30 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow