IC market to exceed SIA's forecast in 2003
Silicon Strategies
01/05/2004, 1:40 AM ET
SAN JOSE--The Semiconductor Industry Association (SIA) expects that worldwide chip sales will exceed its 15.8 percent growth forecast in 2003 over 2002.
At the same time, worldwide sales of semiconductors rose to $16.13 billion in November 2003, a 4.5 percent increase from the $15.43 billion recorded in October, and a 25.7 percent rise from November of 2002, the SIA reported today (January 5, 2004).
The figures were expected. As reported, Pacific Crest Securities Inc. issued November's chip sales last week (see December 31, 2003 story).
Like Pacific Crest, the SIA was also bullish about the chip industry for the month. "November has been another exceptionally strong month for the industry with the year-on-year growth accelerating to 25.7 percent, indicating that 2003's second half performance is one of the strongest on record for our industry," stated SIA President George Scalise, in a statement.
"Year-to-date sales through November are 17.4 percent ahead of 2002. We expect sales for all of 2003 to exceed the current forecast of 15.8 percent with broad-based strength in all end-markets, especially computation, communications, global consumer and automotive," Scalise added.
Capacity utilization reached 95 percent in the fourth quarter, allowing modest pricing power to continue in the industry.
All geographic markets recorded higher chip sales in November with Europe up 6.4 percent sequentially, Japan up 4.5 percent, the Americas up 4.1 percent, and Asia Pacific up 3.8 percent.
The SIA's Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, which represents approximately 66 companies. |
