IDC: PC Chip Sales ‘Fell Off A Cliff’ In 4Q

7:57 am, February 11th, 2009, Ed Sutherland

Photo: Uwe Hermann/Flickr

Computer chip makers saw worldwide demand for microprocessors fall 17 percent during the fourth quarter – a dive that is expected to continue in 2009, a market research firm said Wednesday.

“After hinting at a decline last September, the market fell off a cliff in October and November,” IDC research director Shane Rau told Macworld.

Rau said microprocessor shipments fell 17 percent during the quarter and more than 11 percent compared to the same quarter in 2007.

However, Intel and other chip manufacturers should not expect a let-up in the bad news. Demand for microchips in 2009 is expected to fall 15 percent, according to IDC.

Although chip sales were down on depressed demand for PCs, giant Intel gained marketshare during the quarter. The chipmaker had 81.3 percent of the market, an increase from 80.8 percent during the third quarter of 2008, the market research firm announced.

Despite an economy prompting lay-offs and curtailed production, the Sanda Clara, Calif.-based company announced Tuesday it will invest $7 billion in new production facilities focused on 32 nanometer chips, the San Jose Mercury News reported.

By comparison, Intel rival AMD’s marketshare slipped to 17.7 percent, down from 18.5 percent during the previous quarter and 23.1 percent a year ago.

Posted by Ed Sutherland in News | Comment on this article

About the author

Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.

Email the author | Read more posts by Ed Sutherland.