STM sees 2000 global chip mkt at $210 bln
PARIS, Sept 22 (Reuters) - Franco-Italian chip maker STMicroelectronics said on Friday the global semiconductor chip market could grow 37-40 percent in 2000 and more than 30 percent in 2001, playing down fears that growth may have peaked.
STM's chief economist Jean-Philippe Dauvin said the global chip market could total $205-210 billion this year, revising up his earlier forecast of $200 billion, with the strongest demand for chips seen in computer memories, telecoms and consumer electronics.
``We said in July the market could grow 34 percent this year, we're now upgrading that to 37-40 percent growth. And for 2001 I would not be surprised to see growth above 30 percent,'' Dauvin told Reuters.
``I don't see any signals pushing the market down. The cycle is far from its end,'' he added.
Global tech stocks were hammered on Friday after Intel cut its third-quarter sales forecast, citing weak European demand for its microprocessors.
Dauvin said he saw the microprocessor chip market, Intel's main business, growing 18-20 percent this year, but the DRAM computer memory chip market, where STM reaps much of its revenue, growing by 50 percent.
He said demand remained strong in STM's other core markets -- telecoms and household electronics, and forecast 55-60 percent growth in the chip market for the telecoms sector and 100 percent growth in the DVD (digital video disc) market.
He gave a forecast of 120-140 percent market growth for flash memory chips, a key component in mobile phones, down slightly from an earlier forecast of 160 percent growth.
Dauvin declined to comment on STM's third quarter performance, due to be reported on October 18, saying only that STM had seen no reason to change a forecast given in July for 5-10 percent sales growth in the third quarter.
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