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Semiconductor sector sees slow, positive recovery

Posted: 05 Aug 2002 ?? ?Print Version ?Bookmark and Share

Keywords:chip manufacturer? low-power-consumption chips? microprocessors? PCs? telecommunications?

The demand for semiconductors will increase in 2003, after turning just slightly positive for the remainder of 2002, a sector recovery likely to last through 2004 or 2005, says financial research and investment analysis firm, Standard & Poor (S&P).

S&P reports that the growth in the current semiconductor market was led by Asia, while North America had the highest market share in 2000, accounting for 31 percent of the worldwide market. The Asia Pacific, however, took the lead in 2001, also the only region forecasted to see sales growth in this year.

According to Thomas Smith, semiconductor analyst at S&P and author of the survey, this economic shift reflects an increase in the outsourcing of chip production to Asian contract chip manufacturers, a trend towards local production for cost advantages, and a growing consumption of electronics goods in the region.

In conducting this survey, S&P considered the following industry factors: the trend toward low-power-consumption chips, the demand for low-cost microprocessors driven by entry-level PCs, and the telecommunications industry's demand for chips. In addition they conducted studies on the performances of major players in the chip industry, such as Intel, Micron Technology, and Taiwan Semiconductor Manufacturing Co. Ltd.

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