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To: John Rieman who wrote (40042)4/21/1999 6:38:00 PM
From: BillyG  Respond to of 50808
 
Survey Says: Chip growth is back

Optimism regarding a return to industry growth over the next one to two years has taken
root among semiconductor industry executives, according to a survey released today by
Ernst & Young. The survey, conducted by telephone involving 312 senior industry
executives, found that 84 percent of respondents expect the industry to return to its
historic growth rate within two years while nearly half, or 49 percent, expect the market
to bounce back in the next 12 months. Asked what would be the chief competitive
advantage going forward, forty two percent of the respondents thought technological
innovation
, 22 percent expected partnerships and 19 percent believe being first to market
would be the decisive factor. Ninety-eight percent expect demand for increased
processing speed to continue over the next five years. According to 38 percent of
respondents, telecommunications infrastructure is expected to serve as a key impetus for
semiconductor industry expansion over the next five years. Internet infrastructure was
expected to lead the way in this segment. Meanwhile, 17 percent of respondents said
that either consumer and information appliances (such as DVD and digital phones) or
industrial applications would represent the key drivers of future growth for the
semiconductor industry.
Ernst & Young: 212 773-5299.

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