cautious-outlook-for-global-semiconductor-companies

Cautious outlook for global semiconductor companies

Business risks for semiconductor companies remain low, but increasing LBO activity and higher leverage in the sector could place downward pressure on ratings.
The ratings for companies in Standard Poor's Ratings Services' global semiconductor sector likely will be pushed by opposing forces in the mid term. While industry dynamics may reduce many companies' business risks, increasing LBO activity and higher leverage could place downward pressures on other
ratings.

    Key Trends Could Be Positive


Several key trends are progressing in the chip industry that could have positive effects on ratings for some companies in coming years see table below. These include
The shift of the industry towards consumer electronics, from enterprise-based computing applications
Technology differences between computing and consumer semiconductors
A deceleration of overall growth rates as the enterprise computing sector matures
The ever-increasing cost of leading edge...
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