Another from Dataquest. They must have rushed this. There is an error in the 2nd from last paragraph.
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. |
