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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (35337)	5/24/2000 11:35:00 AM
From: Proud_Infidel	Read Replies (2) \| Respond to of 70976

Global chip sales to surge 31% in 2000, hit $320 billion by 2002, says forecast Semiconductor Business News (05/24/00, 11:23:18 AM EDT) SAN JOSE -- Led by a surge in the memory segment, worldwide semiconductor revenue is forecast to reach $222 billion in 2000, an increase of 31% over 1999 revenue, according to the latest semiconductor forecast by Dataquest Inc. here. The market researcher expects double-digit growth to continue through 2002, when total sales should reach $321 billion before starting a cyclical decline in revenue by the end of that year. "The role of semiconductors in end equipment such as next-generation consumer devices is increasing," said Joseph Byrne, senior analyst for Dataquest's Semiconductor Worldwide program. "In many product sectors, capacity is falling short of demand, with prices -- and therefore semiconductor revenue -- rising to equilibrate." Much of the semiconductor industry's short-term growth will come from the volatile DRAM market, with revenue forecast to grow from $23.1 billion in 1999 to $76 billion in 2002. Dataquest analysts warned on Tuesday that DRAM shortages are looming, with a consequent driving up of prices (see May 23 story). "In mid-2002, we expect the DRAM market to become oversupplied, leading to price declines in DRAM," Byrne said. "Within the following 12 months, we project the foundry market will also become oversupplied, triggering soft prices across a range of semiconductor products." Mid-year forecasts have had to deal with a surprisingly hot semiconductor market so far. Last week, IC Insights, an independent semiconductor market researcher in Scottsdale, Ariz., revised its 2000 forecast upward to a growth rate of 32% (see May 18 story). The Semiconductor Industry Association releases its forecast next week.