Chip market rebound seen in late '02
By David Lammers
EE Times
(10/05/01 12:40 p.m. EST)
SAN ANTONIO, Texas — The chief analyst at supply chain management firm iSuppli Corp., Greg Sheppard, predicted that the semiconductor market will rebound in the second half of 2002 as fiscal stimulus by the U.S. government begins to take effect. Also, inventories will be fully worked off by the second quarter of 2002, ending a year-long overhang that started at the beginning of this year.
Speaking at an iSuppli gathering of supply chain managers here, Sheppard predicted 5 percent growth for the worldwide semiconductor market next year, a forecast that was revised downward after the Sept. 11 terrorist attacks. He said the current underinvestment in capacity could result in shortages in 2003, when a robust rebound in demand is expected.
"Shortages of certain parts could begin popping up in the next few quarters as certain companies keep pulling back on capacity investments. That could be a real factor for some parts based on bleeding-edge, 0.13-micron processes," Sheppard said.
However, the computer and peripherals market, which still accounts for some 43 percent of all chip demand, will remain weak as the personal computer takes "a reduced role" in overall demand. China and a few other Asian countries remain "a bright spot" in the PC market, he said. |
