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EDA Tech Forum journal is a quarterly publication for the Electronics Design Automation community including design engineers, engineering managers, industry executives, and academia. EDA Tech Forum journal provides an ongoing medium in which to discuss, debate, and communicate the electronic design automation industry’s most pressing issues, challenges, methodologies, problem-solving techniques, and trends.

The A word

As the semiconductor industry moves out of recession, a new capacity crunch looms. Paul Dempsey reports.

According to the International Monetary Fund’s (IMF) latest World Economic Outlook, the possibility of a ‘double-dip’ recession cannot yet be discounted even if current data show the world economy beginning to recover. The IMF’s main concern is that private demand (including consumer spending) is not showing enough strength to restore consistent global GDP growth by replacing public sector stimulus spending. In this context, it seems almost perverse to raise the prospect of severe product shortages in key technology sectors—nevertheless they now look certain for semiconductors.

Several analysts have been warning of the possibility for some time. One of the most vocal has been Bill McClean, president of IC Insights, and he has since been joined by figures such as Malcolm Penn, chairman and CEO of Future Horizons (who can also point to a background in chip manufacturing).

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