Parts Wars Heat Up

Those who think the higher demand will necessarily improve profits might need have some rethinking to do in light of the latest forecasts for chip sales.

New Ventures Research last night issued a report indicating chip demand (units) would soar 18% in 2010, with memory in particular under siege. However, companies like Samsung are now saying they will not increase capex this year to meet the spike, meaning last year’s severe dropoff in investment for new fab capacity will be felt for some time to come.

Let the parts wars begin.

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About Mike

Mike Buetow is president of the Printed Circuit Engineering Association ( 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