Asia taking lead in growth, chip capital spending, says In-Stat
Semiconductor Business News
(07/17/00, 12:39:39 PM EDT)
SCOTTSDALE, Ariz. -- Asian demand for electronics systems and semiconductors to build those products will roar at a compound annual growth rate of 26% for the next four years, according to a new forecast by Cahners In-Stat Group here.
In-Stat said China has become the largest electronics-producing country in the Asia Pacific region, which excludes Japan. This year, China will produce $68.5 billion worth of goods and grow at a compound annual rate of 18.3% between now and 2004, said the research firm's report.
Taiwan's silicon foundry suppliers will grab up 40% of the ICs produced by 2010, predicted In-Stat. South Korean companies will surge in growth primarily due to higher prices in DRAMs, added the research firm.
In-Stat predicts that Asia Pacific will be the highest chip-consuming region over the next five years. It added that the region is already spending more money on wafer fabs and semiconductor equipment than any other market in the world.
Those predictions back up a mid-year forecast released last week by the Semiconductor Equipment and Materials International (SEMI) trade group, which predicted that the Asian Pacific region would end up spending $18.8 billion on chip production systems in 2002 compared $12.9 billion in 2000. Those figures top Japan ($7.6 billion in 2002 and $10.6 billion in 2002) and the North American market ($10.1 billion in 2000 and $13.45 billion in 2002). Chip makers in Europe are expected to spend $4.3 billion in 2002 on production systems and $5.5 billion in 2002, according to the new SEMI consensus forecast (see July 11 story).
"As the doom and gloom of the financial crisis continues to fade, the Asian semiconductor industry is enjoying a revival of its own," said analyst Grant Johnson of In-Stat's semiconductor service. |
