<font color=red>Semiconductor Sales to Climb 37% This Year, Researcher Says
10/9/0 0:8 (New York)
Semiconductor Sales to Climb 37% This Year, Researcher Says
San Jose, California, Oct. 8 (Bloomberg) -- Semiconductor
sales could jump 37 percent this year, more than previously
expected, with slower growth the next two years followed by a
``moderate'' decline in 2003, Dataquest Inc. said.
Sales of the thumbnail-sized chips that power everything from
computers to cell phones will rise to $231.6 billion this year
from $169.1 billion in 1999, Dataquest analyst Mary Olsson said.
Earlier this year, the group predicted 31 percent growth.
Demand for chips has climbed as more users access the
Internet from a wider variety of devices and consumers buy fancier
cell phones that deliver data and voice. Dataquest expects 28
percent sales growth in 2001 and 14 percent in 2002, barring
economic changes or natural disaster. Worldwide revenue will top
$339.5 billion in 2004, the researcher said.
``This exceeded even our expectations for growth,'' Olsson
said. ``It's just strong demand across all applications sectors.''
Though personal computers still make up the biggest market
for chips, communications equipment and cell phones are including
more semiconductors than in the past as manufacturers add new
features, she said.
Memory-chip sales are posting the most growth, on pace to
increase by more than 60 percent this year. Prices on dynamic
random access memories, the main memory chips in PCs, will rebound
in coming months, Dataquest said. Supply of flash, which stores
data when a machine is switched off, will be tight until late next
year or early 2002, keeping prices high.
The semiconductor industry typically moves in cycles, either
rushing to add enough capacity to meet demand or slashing
production to cope with falling sales.
Analysts have said the current boom could end as early as the
first half of next year. Dataquest doesn't predict a decline in
sales until 2003, with a return to ``moderate'' growth in 2004.
*T
Worldwide Semiconductor Forecast
Year Total sales ($ in millions) Percent growth
1999 169,136 21.7
2000 231,601 36.9
2001 295,180 27.5
2002 336,150 13.9
2003 320,930 -4.5
2004 339,545 5.8
Source: Dataquest, October 2000 |
