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

To: Fred Levine who wrote (7922)	11/5/2003 7:14:32 PM
From: rhering	Respond to of 25522

SIA raises semiconductor forecast for '03, '04 Silicon Strategies 11/05/2003, 4:00 PM ET SAN JOSE, Calif.--The Semiconductor Industry Association (SIA) today (November 5, 2003) changed its forecast for the IC industry--again. The association is expecting global sales of semiconductors in 2003 to increase by 15.8 percent to $163 billion and it projects 2004 revenues to increase by 19.4 percent to $194.6 billion. It also projects 5.8 percent growth to $206.0 billion in 2005, and 6.6 percent to $219.6 billion in 2006. "We are on an accelerated growth path and this is great news," said John Daane, chairman, president and CEO of Altera Corp., in a statement. "Growth will be broad based across all markets," he said. "We are facing an inflection point in our industry where chip development costs are rapidly increasing with each new process node," he stated. "We believe that this is going to result in some fundamental changes in our industry." This represents the latest forecast from the trade group. Despite a surge in IC demand from Asia-Pacific, the SIA in June lowered its chip forecasts for 2003 and 2004, but was slightly more upbeat than previously expected for 2005 and 2006. At the time, the San Jose-based trade group projected worldwide semiconductor sales would increase 10.1 percent to $154.9 billion in 2003, 16.8 percent to $180.9 billion in 2004, 5.8 percent to $191.5 billion in 2005, and 7 percent to $204.9 billion in 2006. The compound annual growth rate for the IC industry will hit 9.8 percent for the period from 2003 through 2006, according to the SIA (see June 11 story). In June of 2002, the SIA originally projected the worldwide semiconductor industry will grow by 23.2 percent in 2003 and 20.9 percent in 2004 (see June 5, 2002 story). Meanwhile, the new SIA figures are slightly different than those from the World Semiconductor Trade Statistics (WSTS) organization. Last week, the WSTS raised its chip market predictions for the next three years, according to the European Semiconductor Industry Association. With the threat from the respiratory illness SARS retreating the organization sees double-digit percentage growth year-on-year for the worldwide maket in 2003 through 2005 in its Fall 2003 forecast. The market is now tipped to grow 14.2 percent in 2003, to reach $160.7 billion, according to the WSTS. The market growth is expected to accelerate through 2004 to 19.4 percent, taking the annual market to $191.9 billion. And in 2005, the market should grow 12.6 percent, to $216.1 billion, finally beating the previous record market of $204.4 billion scored in 2000, ESIA said (see October 30 story).