Chipmakers Squeezed as Downturn Bites Harder

Chipmakers Squeezed as Downturn Bites Harder

Fresh signs of a downturn in global chip demand emerged on Friday, as STMicroelectronics cut its fourth-quarter outlook while industry sources said two leading Taiwan companies are looking to slash costs.
Shipments of mobile phones are set to decline in 2009 after several years of seemingly unstoppable growth, while the automotive industry, the only source of profitable growth for many chipmakers in recent years, is scaling back production and laying off thousands of workers.



STMicro, Europe's biggest semiconductor maker, blamed a recent slowdown in the wireless, automotive and computer peripheral sectors for cuts to its fourth-quarter sales and earnings forecasts, just a week after reaffirming them.