A Way To Call The Coming Year In Chips

The semiconductor industry has what seems to be a potent new forecasting and planning tool, courtesy of IC Insights Inc., a market researcher in Scottsdale, Ariz. As the graph above shows, the change between the chip market in the fourth quarter of one year and the first quarter of the next year is a pretty good predictor of what the silicon business will do for the rest of that year. "The relationship is hardly perfect," admits ICI President William J. McClean. "So it's not a predictor--call it a momentum indicator."

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