Some comments on chip demand from IDC... By the way, as others have stated, it is a pleasure reading this thread. Very civil and very knowledgeable. I've been long (high 20's) for some time now, and plan to hold this one for the longer term.
John
IDC says chip market to continue slump
in 1999
By Cheri Paquet
InfoWorld Electric
Posted at 5:19 PM PT, Oct 27, 1998
The semiconductor market will remain in a slump until the second half of 1999, when
semiconductor prices and capacity will begin to stabilize, a recent International Data Corp.
(IDC) study found.
The semiconductor market is expected to generate $124.6 billion in revenue this year, a 9.2
percent dip attributed to sluggish PC demand in the first half and economic and political
unrest in Asia and Japan, IDC said.
IDC revised its previous 16.5 percent growth rate in semiconductor sales to 8 percent for
1999. The growth rate will begin to stabilize through major company cutbacks in capacity
and capital spending, combined with investments in equipment needed for year-2000
problems, IDC said.
The semiconductor market should return to double-digit growth by 2000, and generate
$232 billion in sales by 2003, IDC predicted.
All market segments, including microprocessors, were weaker this year, IDC said. The
microprocessor market is expected to generate revenues of $23.9 billion in 1998, a 1.7
percent growth rate. In 1999, however, this market segment is forecast to grow 13.7
percent, to $27.1 billion.
International Data Corp., in Framingham, Mass., can be reached at (508) 872-8500 or
www.idc.com.
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