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Technology Stocks : Atmel - the trend is about to change -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (13224)	12/1/2003 2:00:27 PM
From: tech101	Read Replies (1) \| Respond to of 13565

Market Forecaster forced to mark predictions up, markedly By Peter Clarke Silicon Strategies 12/01/2003, 8:11 AM ET EL SEGUNDO, Calif. -- Market research and analysis company iSuppli Corp, has ripped up its three possible scenarios for chip market growth in 2003 and decided that the market is growing even more strongly than it supposed as recently as August 2003. The forecaster said Monday (December 1, 2003) that the worldwide chip market in 2003 would end on $178.4 billion in 2003, up 13.9 percent on 2002 and from there would rise to $208.8 billion in 2004, up 17 percent on 2003. As recently as August the firm was saying the 'probable' growth figure for 2003 was 9 percent, the pessimistic figure was 8 percent and iSuppli's most optimistic forecast was 12 percent growth (see August 18 story). So despite backing three answers iSuppli has now had to revise up, as the market has gained strength faster than it predicted. In 2005, 2006 and 2007 the global market size would be $235.7 billion, $238.4 billion and $261.5 billion respectively resulting in a double-digit compound annual growth rate (CAGR) of 10.8 percent from 2002 to 2007, iSuppli said. In contrast, semiconductor revenue rose at a CAGR of only 3.8 percent from 1998 to 2002, due to the impact of the electronics downturn and subsequent market stagnation. It is also notable that iSuppli is predicting a 12.9 percent annual growth in 2005 before a collapse to flat market conditions with growth of only 1.1 percent in 2006. The semiconductor industry's acceleration began in the second half of 2003, after negative factors in the first half faded. Meanwhile, increasing demand for electronic equipment has begun boosting chip sales, iSuppli said. "The reviving IT markets and greater consumer confidence have generated a very strong market upturn and have relegated the Severe Acute Respiratory Syndrome (SARS) epidemic, and other first half concerns, into our distant memories," said Gary Grandbois, iSuppli principal analyst, in a statement. Semiconductor sales in the second half of 2003 grew 18 percent compared to the first six months of the year and 18 percent again compared to the second half of 2002, Grandbois noted. Growth in semiconductor sales is being driven by increased demand for all types of electronic equipment, including PCs, consumer electronics devices, wireless communications products and networking gear. The PC and mobile handset markets have been particularly strong in 2003 and will continue their robust growth in 2004. Due to rising PC and mobile handset sales, flash memory and DRAM will be among the fastest-growing chip segments in 2004, iSuppli predicted.