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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (27543)	3/1/2005 9:34:40 PM
From: ild	Read Replies (1) \| Respond to of 110194

Gartner sees two-year chip market stall, echoes S&P By Peter Clarke Silicon Strategies 03/01/2005, 5:57 AM ET LONDON — Market forecasting firm Gartner Inc. cut its assessment of annual growth in the global semiconductor market and predicted 3.4 percent sales growth in 2005 followed by an even slower 2006 of 2.1 percent growth, according to a Reuters report. This brings Gartner in-line with a recent prediction from financial institution Standard and Poors. "Semiconductor market growth peaked in the third quarter of 2004 and is now trending downward on a rolling annual basis," the report quoted the research firm as saying in a report issued Monday (Feb. 28). "Market growth in 2005 and 2006 will be about flat," Reuters also quoted the report as saying. Gartner was predicting the semiconductor market would expand by 5 percent in 2005 in Feb. 2005, in-line with many market forecasters. However, many of these are predicting that 2005 will be the low point of a cycle with increased annual growth to follow in 2006. Gartner rejected that view saying 2005 and 2006 would be "sluggish years of overcapacity and increased price pressure," the report said. That marks a major slowdown from the nearly 24 percent sales growth the industry experienced in 2004, Gartner said. Gartner's "flat then flatter" prediction matches a similar forecast from Standard & Poor's Equity Research issued on Friday (Feb. 25).