SARS will not impact IC market, says report
Semiconductor Business News
(05/08/03 06:11 p.m. EST)
siliconstrategies.com
SAN FRANCISCO -- The outbreak of severe acute respiratory syndrome (SARS) is creating a climate of fear in Asia-Pacific, but the epidemic will have little or no impact on the semiconductor business in the region, according to a report from America Technology Research Inc. today (May 8).
If anything, the epidemic is causing an increased demand for broadband services, especially for people who are restricted in terms of travel, according to the report from the Old Greenwich, Conn.-based market research firm.
The assessment differs from several analysts, including iSuppli Corp., which believes that SARS is causing problems in the supply chain (see May 2 story ).
Others have a different opinion. “Our recent checks indicate that the SARS impact on Asia-Pacific semiconductor chip demand and production appears to be minimal,” said Bill Ong, senior analyst for American Research in San Francisco, in the report. “Asian electronics manufacturers, the production supply-side of the equation, have implemented precautionary measures to ensure that their workforces are safe and production will not be significantly disrupted by SARS,” Ong said.
In its previous forecast, the research firm expects the semiconductor chip industry will grow 11 percent in 2003 over 2002. The Asia-Pacific IC market is expected to grow 15 percent this year, representing 38 percent of the overall IC mix, the report said.
“Based on our analysis, if the Asia-Pacific growth rate was negatively impacted by 20 percent due to SARS, the overall industry growth would simply drop from 11 percent to 10 percent growth,” according to the report. “A negative impact of 35 percent will cause the industry to fall from 11 percent to 9 percent, while a 50 percent impact would yield a decline for the industry to 8 percent. We see these more pronounced negative scenarios as unlikely.” |
