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SIA predicts '04 good year for global chip market

Posted: 17 Jun 2003 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor industry association? sia? semiconductor?

The 2003-2006 mid-year forecast of the Semiconductor Industry Association (SIA) projects a 16.8 percent growth for 2004 and a compound annual growth rate (CAGR) of 9.8 percent over the forecast period. Annually, worldwide sales of semiconductors are expected to increase by 10.1 percent in 2003, 5.8 percent in 2005, and 7 percent in 2006. Further, SIA said that industry sales will grow from $141 billion in 2002 to $205 billion in 2006.

"In 2004, the growth is led by a strong increase in memory, including a 43 percent jump in DRAM and a 25 percent increase in Flash, and supported by double digit growth in other product sectors", said George Scalise, SIA president. "The recovery is broad based across computer, consumer, and communications applications as they all continue to be drivers for the industry. The forecast contemplates a return to higher IT spending levels and the emergence of multi-function products such as smart phones."

According to SIA, almost all semiconductor world markets, namely the Americas, Europe, Japan, and the Asia-Pacific, are forecasted to experience growth in 2004 through 2006. However, the Asia-Pacific market is expected to experience the strongest growth. It is seen to grow 12.1 percent to $57.3 billion in 2003, 20.9 percent to $69.3 billion in 2004, and 9.4 percent to $75.8 billion in 2005. In 2006, the Asia-Pacific will report growth of 7.9 percent to $81.8 billion.

"Semiconductor consumption will continue a migration from the Americas to Asia-Pacific, reflecting the outsourcing of electronic equipment manufacturing, including component sourcing and design services, to the region," noted Scalise.

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