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

To: Sun Tzu who wrote (52742)	9/21/2001 8:23:36 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Worldwide economy and chip market to rebound in 2002, says IC Insights Semiconductor Business News (09/20/01 21:38 p.m. EST) SCOTTSDALE, Ariz. -- Despite the current IC downturn and last week's terrorist attacks in the United States, the worldwide chip market--and economy--are still poised to rebound in 2002, according to a new report from IC Insights Inc. late today. But needless to say, the IC market is a disaster in 2001. Continued weakness in the IC sector, compounded by last week's terrorist attacks in the United States, could cause the worldwide chip market to decline by 34% in 2001 over 2000, according to a forecast from IC Insights issued earlier this week. "Prior to the attack, IC Insights forecast that 2001 worldwide electronic system sales would decline 4%," IC Insights said. "We now expect worldwide system sales to decline 6% in 2001," they said. For 2002, however, IC Insights is sticking to its original forecast, which calls for the worldwide semiconductor industry to grow from 10-20% next year over 2001. Specifically, the worldwide chip business is projected to grow 14% in 2002 over 2001, according to the Scottsdale-based research firm. "As mentioned previously, IC Insights expects a significant rebound in worldwide economic growth and electronic system sales to begin in mid-2002," according to the market research firm. "This, in turn, should fuel a surge in IC sales," IC Insights said. "IC Insights believes that sequential IC market growth in both 3Q '02 and 4Q '02 could be 10% or greater. It should be remembered that there will be no significant IC inventory overhang hindering growth next year," they added. There are also other positive signs. "There is little doubt that the tragic events of September 11th have harmed the economies of many countries," IC Insights said. "Before the attack, 2001 worldwide [gross domestic product] was likely to show about 2.4% growth, right on the edge of a worldwide recession. It now appears that the 2001 worldwide GDP growth rate will drop to 1.8-2%, fully within the range of a worldwide recession," they said. "IC Insights believes that the worldwide economy may show strong growth in 2002, especially in the second half of the year," they said. "Worldwide GDP could be expanding at a 4% or greater growth rate in the second half of 2002."