Credit Rating Agency Expects Chip Sector Demand to Rebound Early Next Year

General

A domestic corporate credit rating agency has forecast that conditions will begin to improve for the semiconductor sector from next year's first quarter.

A senior researcher at Korea Ratings Kim Seung-beom presented this outlook during a seminar hosted by the ratings firm on Friday, saying improved prospects are premature for this year but will begin to pan out from next year's first quarter.

He said inventory levels of chips are declining across the board and will near a normal level by the second half of next year.

Kim argued that sluggish demand was the root cause of the current contraction in the semiconductor market, as it caused increased stockpiles and lower prices.

He stressed the need to accurately predict demand and adjust supply volumes accordingly.

Source: KBS World Radio