Finally some positive news for once. Hopefully more to follow;
Growth of DSPs and chips:
biz.yahoo.com
FOCUS-Global chip sales seen bouncing back in 1999
(Adds details on Intel, comments, byline)
By Duncan Martell
PALO ALTO, Calif., Nov 11 (Reuters) - The worldwide market for semiconductors
will rise 9.1 percent to $133.4 billion next year, after a sluggish 1998 when the Asian
economic crisis and overcapacity dragged down the industry, the Semiconductor
Industry Association said on Wednesday.
The trade group said in its annual global forecast that 1998 global chip sales should fall
10.9 percent to $122 billion. It was the first time since 1985 that the entire industry -- as
opposed to specific product markets -- suffered an overall decline.
''The underlying fundamentals of the semiconductor business are strong,'' said Steven
Appleton, chief executive of memory chipmaker Micron Technology Inc. ''There is no
question this industry will continue to drive the world economy in technology
advancements and value added to raw materials.''
The rebound next year will be paced by sales of microprocessors -- the brains of
personal computers -- memory chips and digital signal processors, or DSPs, which help
convert sound, pressure and light into the digital language of computers and are used in
everything from cellular phones to microwave ovens.
The SIA forecast also called for sales to rise 15.2 percent in 2000 and 18.2 percent in
2001. During the next three years, the market should grow 42 percent to $182 billion,
Appleton said in a statement.
The memory chip market, which has seen prices plunge since early 1996 because of
overcapacity, should hit bottom this year as sales fall 25.7 percent to $21.8 billion. The
market is forecast to bounce back 18.1 percent in 1999 to $25.8 billion, surge 23
percent in 2000 and 28 percent in 2001 to $40.5 billion.
In the first half of this year, demand for personal computers lagged as PC makers
cleared out a glut of inventory and demand was weaker than expected. Partly in
response, the world's largest chipmaker, Intel Corp., cut prices on its microprocessors
to spur demand and to fend off competition from scrappy rival Advanced Micro
Devices Inc. in the low-end of the PC market.
Sales of microprocessors, which account for about 77 percent of Intel's revenue, are
expected to level off in 1998 to $23.6 billion, a decrease of 0.6 percent from last year.
That is mainly because PC unit shipment growth tapered off to 13 percent from 19
percent and the increasing popularity of sub-$1,000 PCs first among consumers and,
now increasingly, businesses, Appleton said.
But there is a silver lining, at least in the short term. Santa Clara, Calif.-based Intel said
late Tuesday its fourth-quarter results would surpass Wall Street forecasts amid strong
sales of its PC-related products and in all regions of the world.
The news sent Intel's stock up $6.125 to a record closing high of $103.69. The stock of
Texas Instruments Inc., the largest maker of digital signal processors, also rose, tacking
on $5.56 to close at a 52-week-high of $69.44. Micron Technology rose $3.375 to
close at $47.625, its highest since August 1997. |
