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To: Curlton Latts who wrote (7279)10/30/1997 10:45:00 AM
From: BillyG  Read Replies (1) of 25960
 
Chip consumption in PCs grows 15% a year

SCOTTSDALE, Ariz.--The dollar value of semiconductors use in personal
computers will increase at a compound annual growth rate of about 15% for
the next four years, according to a new report by In-Stat here.

The market research firm said the increase of chip consumption in PCs will
directly match the growth rate of personal computer revenues, which is
placed at about 15% a year until 2001, according to the new report.

"We expect total semiconductor dollars per PC to remain relatively constant,
continuing the long-term trend in the PC market," said Mark Kirstein,
director of research for In-Stat's Computer Group. "Although we are
looking at an overall growth rate of around 15% for the 1996-2001 forecast
period, some semiconductor markets will do better than others."

The desktop PC market segment will most likely be the largest single
consumer of semiconductor devices over the next four years, according to
the market report. In-Stat expects microprocessors to continue taking the
lion's share of the dollars spent on chips for PCs.

In-Stat also said it sees a slight increase in the memory share of dollars, over
1997 levels, but its percentage of the total will remain down from 1996. The
audio and modem markets will be substantially impacted by host-based
integration as well as modem/audio integration, according to In-Stat's new
PC forecast. The other semiconductor segments face a mixed outlook over
the next five years, the new study concludes.

A service of Semiconductor Business News, CMP Media Inc.
Story posted at 8:30 a.m. EST/5:30 a.m. PST, 10/30/97

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