Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (6820)	11/8/2002 5:17:37 PM
From: Return to Sender	Read Replies (1) \| Respond to of 95610

Reports: Chip Recovery Is Here Fri Nov 8, 1:44 PM ET Darby Mullany, www.EcommerceTimes.com story.news.yahoo.com After two extremely difficult years, things are finally looking up for the global semiconductor industry. Two industry forecasts released this week indicate chip sales will increase, with the recovery beginning this year. • 2003 Chip Growth Forecast Cut • Report: Semiconductor Sales Mark 'Recovery' • Are Chipmakers Finally on the Road to Recovery? One of the forecasting firms, Gartner Dataquest, predicted the chip market will post 2002 revenue of US$153.3 billion, a .5 percent increase over last year, when the industry was hit hard. In 2001, worldwide semiconductor revenue totaled $152.2 billion, a 32 percent decline from 2000. And there are better times ahead. Gartner forecast the chip industry will see double-digit growth of 12.1 percent in 2003, with sales totaling $171.8 billion. "2003 is forecast to be a transition year, as a phased recovery in end markets gradually works its way back to fuel incremental semiconductor sales growth," said Richard Gordon, principal analyst in Gartner Dataquest's semiconductor research group. 2002 Meets Expectations Gordon said the chip market recovery of 2002 is going as expected, with strong sales in the first half and weaker growth in the second half of the year. "Although semiconductor sales in the third quarter of 2002 held up reasonably well, benefiting from a degree of seasonal strength, that strength has not carried forward into the fourth quarter and highlights the poor state of electronic equipment production," he said. However, according to Gartner Dataquest, while PC unit production growth has stalled this year, a corporate PC replacement cycle is becoming overdue and cannot be put off much longer. Feeling Chipper The Semiconductor Industry Association also released a positive forecast for the chip market, projecting an industry recovery with double-digit growth over the next two years. In fact, SIA's chip sales forecast is even rosier than Gartner's. The association expects global chip sales to increase 1.8 percent this year, followed by a 19.8 percent year-over-year jump in 2003. AMD (NYSE: AMD - news) chairman W.J. Sanders III presented the forecast Wednesday at an SIA event in San Jose, California. "The long-awaited recovery is under way," he said. "We believe the next several years will see steady growth following the industry's steepest-ever decline in 2001."