False dawn: today’s semiconductor growth isn’t what it seems

The global semiconductor industry is in treacherous waters, with sales almost entirely driven by artificial intelligence infrastructure demand while the rest of the market languishes in recession. That’s the rather bleak picture painted by Malcolm Penn, CEO of industry research firm Future Horizons, who warns that conditions remain perilous for years to come.

Speaking during his latest industry briefing, Penn dismantled the notion that the chip market has entered a boom phase, despite sales starting to climb in August last year. “We have to separate our head from our heart,” he cautioned. “Our heart sees the headlines and thinks we’re in a boom, but the data says no – we’re still in a recession.”