Sales up, Profits down for Semiconductor Industry; Legacy to the Rescue

According to a June report issued by The Semiconductor Industry Association (SIA), the price war has begun in the Semiconductor space. Currently, solid (EIA expects a 6.3% CAGR between 2008-2011) global demand is being driven by stellar sales in a number of categories including:

Flat panel television (29% growth expected in 2008)

Cellular Phones - (12% expected growth in '08 to 1.3 billion units)

Personal computers –(10% expected growth to 300 million units in '08)

Digital Cameras – (11% growth expected in ’08)

Another key growth driver is the Solar Cell market.In 2007, global production of solar photovoltaic (PV) cells increased by a 51 per cent to 3,733 MW.

As competent suppliers including Tyco strive for profitability in the semicon businesses solutions such as those offered by LGYH which help reduce costs should be in greater demand. Due to this fact, we feel that Legacy Holdings represents a very timely play on the massive, yet increasingly price point competitive semiconductor industry.