Reports are suggesting that weakening demand for personal computers, notebooks and other such electronic devices could be having a negative effect on the semiconductor and electronics production sector.
The trend is thought to have prompted several analysts to scale back projections for chip makers, with this potentially having a knock-on effect for industrial and specialty gas consumption in the sector.
Analysts say checks with manufacturers and suppliers in Asia point to a softening market for both desktop and notebook computers, highlighted by a weak back-to-school season and slowing demand in the US and Europe.
A slowdown in PC sales, especially those of laptops, could produce trouble among other tech players. Computer makers Dell and Hewlett-Packard and Apple have all apparently benefited from strong PC demand this year.
Krishna Shankar of JMP Securities indicated in a report recently that his checks with contract manufacturers and foundries in Taiwan point to weakening PC demand.
Concerns about the slowing economy and its effect on sales of PC’s and other technology are thought to have weighed heavily on the chip sector. The Philadelphia Semiconductor Index has lost more than 14% during the past month.