To: Tony Viola who wrote (18729 ) 6/9/1999 10:01:00 AM From: Moonray Read Replies (1) | Respond to of 25814
Bloomberg Version: Worldwide Chip Industry to Grow 12% in 1999, SIA Says San Jose, California, June 9 (Bloomberg) -- Global semiconductor sales are expected to rise 12.1 percent this year, marking the first time the industry will post double-digit growth since 1995, a trade group said. Worldwide chip sales will grow to $140.8 billion this year and surge 15.4 percent to $162.5 billion in 2000, the Semiconductor Industry Association said. Chip industry sales have declined for the past three years, and the last time growth was more than 9 percent was in 1995, when sales soared 42 percent. Digital signal processors, specialized chips used in everything from cameras to computers, are leading the recovery as well as memory chips, used mostly in personal computers. The industry was hammered in the past few years because of excess manufacturing capacity, slowing demand and plummeting prices. ''The greatest growth driver of them all is the rapid public acceptance of the Internet,'' said Wilfred Corrigan, an SIA board member and also chief executive of LSI Logic Corp. ''The electronic highway is paved with silicon chips.'' The forecast wasn't a surprise because companies have seen sales gains, analysts said. Taiwan Semiconductor Manufacturing Corp., the world's largest maker of custom-made chips, said today sales jumped 39 percent in May to a record $173 million. ''1999 will finally see double-digit growth, and the longer- term trend is in that order,'' said Daan Muusers, an analyst at Friesland Bank Securities in Amsterdam. ''The recovery should last through 2001 or 2002.'' The memory-chip market, which declined 19 percent in 1997 and 21 percent last year, will make a comeback by increasing 19 percent this year, the SIA said. The microprocessor market is forecast to rise 16 percent in 1999. The U.S. market will remain the largest geographic region, representing about a third of chip revenue worldwide, and Asia-Pacific will be the second largest as it recovers from big declines during the economic turmoil in that region. The industry will be helped by rising personal-computer shipments, which are expected to grow 21 percent in the second quarter, according to International Data Corp., which raised its forecast from 16.5 percent growth. In 1999, shipments rose 12 percent as the Asian recession curbed spending on computers. Now that Asian economies are recovering, consumers in Japan in particular are buying PCs to get on the Internet, IDC said. o~~~ O