Chip market to grow in 2000 and 2001, but product shortages loom
Semiconductor Business News
(10/30/00, 08:55:56 PM EDT)
SAN DIEGO -- Despite a sudden slowdown in the PC, network equipment, and wireless handset markets in recent weeks, the semiconductor market will continue to grow at a double-digit rate for the remainder of this year and beyond, according to forecasts from Dataquest Inc.
But the San Jose-based market research house also predicted that the semiconductor vendors themselves will face an assortment of problems, including allocation issues in the short term as well as a major downturn in 2003 and 2004.
"We will see allocation [in the semiconductor industry] in 2001 and 2002," said Jim Handy, who tracks the semiconductor market for Dataquest, in a presentation at the "Dataquest Semiconductors 2000" conference here today. "But we will see overcapacity in 2003 and 2004," he said at the event.
During his presentation, Handy re-iterated the company's previous semiconductor forecast, which was outlined earlier this month. In total, the worldwide semiconductor industry is projected to show an annual compounded growth rate of 13.6% from 1999 to 2004, he said.
The worldwide chip market will grow from $169 billion in 1999, to $232 billion in 2000, to $295 billion in 2001, to $336 billion in 2001, Dataquest said.
By 2003, however, the market will drop 4% to $321 billion. And in 2004, the business will bounce back to $340 billion, a 6% growth rate over 2004, Dataquest said. |
