Worldwide IC market to drop 15.8% in 2001, but recovery projected in 2H, says In-Stat
Semiconductor Business News
(05/15/01 13:12 p.m. EST)
SCOTTSDALE, Ariz. -- The worldwide semiconductor market is projected to drop by 15.8% in 2001, but a gradual recovery is expected in the second half of this year, according to a new report from the In-Stat Group here today.
In total, the worldwide chip market is projected to hit $170 billion in terms of sales, a 15.8% drop over 2000, according to In-Stat of Scottsdale, Ariz. In comparison, the worldwide chip business grew by 36.8% to $204.4 billion in 2001.
"Although the sales growth of key end products including PCs, cell phones and networking hardware has slowed, most of these segments will exhibit some unit growth in 2001," said analyst Steve Cullen, who tracks the market for In-Stat.
"However enough of the unit growth will be satisfied by existing inventory that semiconductor unit growth is also expected to decline, by 10.8% to 333 billion," he said.
The average selling prices for chips are also expected to decline in 2001, by 5.7% to $0.517, as capacity exceeds demand for most part types.
The market research firm forecasts that the worldwide semiconductor market will decline dramatically in 2001, with early quarters showing a significant sequential downturn. But the recovery will begin in the second half as inventories are worked off, according to the research company.
The projections are somewhat in line with other forecasts. Earlier this month, Dataquest Inc. slashed its forecast for the worldwide semiconductor industry for the fourth time in recent months, projecting that the IC business will decline 17% over last year. But the worldwide chip market is poised for a modest recovery in 2002, according to a new forecast from Dataquest.
Citing the downturn in the industry, Dataquest projected that the worldwide chip business will hit $188 billion in terms of total sales for 2001, a 17% decline from 2000 (see May 8 story). |
