WSTS revises forecast 2004 to 2007, says report
By Peter Clarke
Silicon Strategies
06/01/2004, 6:15 AM ET
TOKYO -- The World Semiconductor Trade Statistics (WSTS) group has raised its forecast for worldwide semiconductor sales in 2004, according to a Reuters report that quotes the chairman of WSTS in Japan as its source.
Global chip sales are likely to grow 28.4 percent to a record $213.6 billion in 2004, according to the report which said WSTS had upped its forecast from one of 19.4 percent growth made in October. The reason for the increase is stronger than expected demand for PCs, cellphones, DVD recorders and other electronics products, an industry group said on Tuesday.
"Demand for digital electronics products like DVD recorders and digital still cameras is growing at a brisk pace," the report quoted Hiromu Yamamoto, chairman of WSTS's Japan unit, as saying. "Also, a good year for personal computers and mobile phones is a good year for chips, since those two products represent 40 percent of the global semiconductor market," the report said he said.
Semiconductor International Capacity Statistics group (SICAS), said manufacturing capacity utilization in wafer fabs had hit a three-year high in the first quarter of 2004, last week.
However, after high-growth 2004, the following year is expected to show 8.5 percent growth in 2005 followed by a 0.7 percent decline in 2006, WSTS is reported to have said. This is attributed to a slow-down in PC upgrade demand and overcapacity in chips. Asia-Pacific is likely to be an exception to this trend managing to grow robustly in 2004, and 2005 and showing a 1.4 percent gain in 2006, the report said.
After the dip in 2006, the global chip market is predicted to show 9.3 percent growth in 2007.
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