Global chip demand seen up 2.3 pct in 2002-WSTS
sg.news.yahoo.com
Tuesday October 29, 2:50 PM
TOKYO, Oct 29 (Reuters) - Global demand for semiconductors is expected to rise 2.3 percent in 2002, rebounding after last year's worst-ever 32.0 percent drop, industry group World Semiconductor Trade Statistics Inc (WSTS) said on Tuesday.
That was the same as the estimate provided in its previous May report, given that a full-fledged IT recovery remains elusive.
The organisation also forecast that following a modest recovery this year to $142.2 billion, growth would be 16.6 percent in 2003, 19.2 percent in 2004 and 2.6 percent in 2005.
The figures from WSTS, covering 67 major chipmakers worldwide, were released by the Japan Electronics and Information Technology Industries Association (JEITA).
In the May report, WSTS estimated the global chip market to grow by 21.7 percent in 2003 and 14.5 percent in 2004.
For 2005, growth had been expected to slow to 3.2 percent although it said at the time that such a figure would push the market above the record of $204.4 billion set in 2000.
But it said in the latest report that in 2005 the market would be $202.9 billion, below that record.
Many executives forecast the chip market will not start recovering in earnest before the middle of next year, due partly to slow technology spending by corporations.
Carly Fiorina, chief executive of computer and printer maker Hewlett-Packard Co , said last week that growth in technology investment would be "muted at best" next year among HP's corporate customers, many of which had overspent on technology in the 1990s.
But some in the semiconductor industry have recently given more upbeat comments on the market than before.
The head of Europe's largest chipmaker, STMicroelectronics
, said last week that the semiconductor industry had seen the worst of the current slump and was on the way to recovery.
When posting strong quarterly profits last Wednesday, Pasquale Pistorio, chief executive of the Franco-Italian chipmaker, said he shared analysts' views that the chip market would show growth of more than 10 percent next year.
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