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To: Steven Angelil who wrote (5875)	10/23/1997 1:12:00 PM
From: BillyG	Read Replies (1) \| Respond to of 25960

Semiconductor market growth................... techweb.cmp.com A service of Semiconductor Business News, CMP Media Inc. Story posted at 10 a.m. EDT/7 a.m. PDT, 10/23/97 Dataquest: 16.7% chip growth in '98 By Ismini Scouras Electronic Buyers' News SAN DIEGO -- Continued price erosion in DRAM markets will keep global semiconductor revenues from hitting the $300 billion mark in the year 2000 as expected, according to Dataquest Inc., which now says that industry milestone will be reached in 2001. During the Dataquest Semiconductor Industry conference here, the San Jose-based market research firm estimated that worldwide chip revenues will reach $150 billion this year, compared to $142 billion last year, when the chip industry fell 6% from $151 billion in sales in 1995. In 1998, the semiconductor market will grow 16.7%, to $175 million, Dataquest predicted. Dataquest said electronic equipment production growth of 6 to 8% in the next four years will support a compound annual growth rate of 16 to 18% in the semiconductor market. The three major applications are driving chip revenues--PCs, communications equipment, and consumer electronics--which currently accounts for 75% of the total chip market, said Joseph Grenier, vice president and director of the semiconductor device group at Dataquest. "PCs consume more chips than any other application," Grenier said. In 1992, only 10% of the IC market accounted for PC semiconductors; this year it's approaching 40%. The PC market will ship 83 million units this year and as much as 152 million units in 2001, representing a 16% CAGR, Dataquest estimates. PC unit demand continues to drive the DRAM market, Grenier said. Graphics and multimedia enhancements will drive the average megabyte per system from 32-Mbytes this year to 152 Mbytes in 2001. The DRAM market continues to be in favor of the buyer. Although DRAM bit growth in the first eight months of this year has grown 100% compared with the first eight months of 1996, DRAM prices continue to fall. Some of the "hot areas" of the semiconductor market includes flash memory, which will grow from roughly $3 billion this year to $6.8 billion in 2001, driven by digital cellular phones. The communications IC segment is another fast-growing market, which will increase to $60 billion in revenue in 2001 from $8 billion in 1990, Grenier said. The microprocessor market is another "hot" segment, which will increase at a compound annual growth rate of 19% from 1997 to 2001, Grenier said. The microprocessor market this year will reach $15 billion in revenue, and will jump to $30 billion in 2001 and $45 billion in 2002. The growth will represent market share opportunities for microprocessor clone makers, Grenier suggested.