To All,
Big surge in IT spending
good news for IC makers
By Ismini Scouras
Electronic Buyers' News
SAN DIEGO --Semiconductor manufacturers will be a big beneficiary
from the massive amount of capital being allocated toward information
technology, according to Manny Fernandez, chairman, president and chief
executive of Gartner Group, speaking at the Dataquest Semiconductor
Industry conference here this morning.
This year, $650 billion will be spent on information technology (IT), said
Fernandez, who predicted the total IT market will grow to $1.3 trillion in
the year 2001. He added that the increase in IT spending will directly result
in a greater demand for semiconductors worldwide.
Semiconductor market growth will get a boost from the obsolescence of
software, Fernandez predicted. About 60% of today's existing software
will be obsolete by the year 2001, he added, and chip consumption will
also be driven by the continuous move to "mobility."
Nearly "50% of all telecommuters today will not come back to the office,"
Fernandez said. "If you look at every dollar that is spent on IT, 3% is going
into the mobile environment." The move towards mobile computing will
expand and create new demands for chips, he said. |
