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To: DJBEINO who wrote (8880)	11/1/2000 9:51:50 PM
From: Ram Seetharaman	Read Replies (1) \| Respond to of 9582

Wednesday November 1 6:41 PM ET Chip Sales Expected to Top Record in 2000 SAN FRANCISCO (Reuters) - Global semiconductor sales are expected to rise 37 percent this year to $205 billion -- the highest ever -- and will grow to $319 billion by 2003, according to an annual report issued on Wednesday by a leading industry trade group. Sales of chips for data networking, broadband, wireless, optoelectronics and continued strong demand for the personal computer will spur the gains, the Semiconductor Industry Association (SIA) said in its influential annual forecast. Chip sales are forecast to rise 22 percent from the estimated $205 billion in 2000 to $249 billion next year, the SIA added. ``The PC is still a major growth driver, but for much of the industry there are faster growth opportunities associated with the new information-based economy,'' Wilfred Corrigan, chief executive of chipmaker LSI Logic, said in a statement given at the group's annual forecast and award dinner. Corrigan said the growing variety of communication opportunities in markets distributed around the globe would help moderate future semiconductor boom and bust business cycles that have affected the industry over the years. ``While traditionally there have been two dominant markets around the world, in this forecast, we see a broadening of product demand coming from all geographic regions,'' said SIA president George Scalise. While the Americas will remain the world's largest market, Asia-Pacific is the fastest growing region, the group said. Ten years ago, the two largest markets -- the United States and Japan -- made up about 75 percent of the world market for semiconductors. Today, the two biggest markets -- the United States and Asia-Pacific -- account for less than 60 percent of the worldwide market. In the Americas, chip sales should rise 34 percent this year to $64 billion and 21 percent next year to $77 billion. The group sees the market reaching $96 million in 2003. The European market will grow 33 percent this year to $42 billion and 21 percent next year to $51 billion. It is expected to reach $66 million in 2003. Japanese sales should increase 42 percent this year to $46 billion and 22 percent next year to $56 billion, touching $72 billion by 2003. In the Asia Pacific region, sales should gain nearly 41 percent this year to $52 billion, 24 percent next year to $65 billion and should hit $85 billion by 2003.