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 : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: runes who wrote (6802)	8/18/2003 1:41:35 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Gartner raises chip market forecasts on strong Q2 Silicon Strategies 08/18/2003, 8:00 AM ET STAMFORD, Conn. -- Market forecaster Gartner Inc. raised its predictions for the 2003 semiconductor market on Monday (August 18, 2003). The annual growth estimate has been lifted from 8.3 percent to 11.2 percent and as a result the worldwide semiconductor market is forecast to reach $173 billion in 2003, compared to $168 million, which the company was predicting in May (see May 21 story). Gartner said that a healthy second quarter of 2003 indicated the semiconductor market was continuing to recover from the most prolonged slump in its history and prompted the company to boost its predictions. "Noteworthy improvements in market conditions during the last few weeks confirm that the industry is continuing its recovery as expected and is about to enter a more accelerated growth phase. This observation is in line with our long-standing assumption of a three-phase recovery in the market," said Richard Gordon, research vice president for Gartner's semiconductor research group, in a statement. "While many industry watchers have been revising down their forecasts recently, we have been predicting growth of around 10 percent for 2003 since the fourth quarter of last year." Gartner analysts said that in front-end semiconductor manufacturing, silicon demand is increasing, overall wafer fab utilization now exceeds 80 percent and foundry wafer pricing has firmed up. In packaging and assembly, overall utilization rates continue to increase on a monthly basis and leading-edge capacity has become tight as the demand for advanced packaging solutions grows. In device markets, inventories are back to normal levels, pricing has stabilized, and in some cases, there are shortages of critical components. In application markets, the digital cellular handset market remains robust, demand for digital consumer electronics products has not waned and there are early signs that the corporate PC replacement cycle has begun. "It is becoming increasingly likely that the long-awaited corporate PC replacement cycle will be characterized by incremental increases in IT spending spread over a more prolonged timeframe than we have seen in the past," Gordon said in the same statement. "While this trend would underpin a sustained semiconductor recovery, it may act to temper headline annual revenue growth. Excess capacity in the telecommunications sector also remains a concern that could postpone the return and inhibit the level of telecommunications industry capital spending in the medium to long term."