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Survey reveals execs confident about IC market, China

Posted: 26 Mar 2007 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor? global chip industry? KPMG LLP? global IC market? China market?

2007 is not all about gloom for the IC industry. Semiconductor executives are feeling positive about the near-term prospects of the global IC industry, expecting revenue gains to exceed 10 percent this year, according to a survey from KPMG LLP, an audit and advisory firm.

In addition, executives are upbeat about China.

According to the survey results, 96 percent of respondents said they're not only doing business in China, but most executives also ranked the country as the top geographic area for driving revenue growth in the next three years, followed by Taiwan, the rest of Asia and the United States.

Meanwhile, while executives surveyed in the fall of 2006 ranked wireless handsets and computing products as the most important current market applications, at 26 percent and 24 percent respectively, the KPMG survey predicted that the importance of consumer products which include MP3 players, digital cameras, televisions and automotive devices such as GPSwill increase by almost 50 percent in three years to become the industry's most important revenue driver.

Wireless handsets will fall to second place, while computing applications, long the industry's primary application market, are expected to decline by 36 percent in importance in the same three year period, according to the results.

''Consumer products are clearly gaining in importance as a key application category,'' says Gary Matuszak, leader of KPMG's global Information, Communications, and Entertainment (ICE) practice, in a statement. ''This is a stark departure from the traditional consumption model for integrated circuits, when original equipment manufacturers of computers, computer peripherals, and communications devices were the key consumption categories. This shift in consumption is partly responsible for fueling investment growth in Asia.''

KPMG's survey, conducted in partnership with the Semiconductor Industry Association, polled 300 American, European and Asian semiconductor executives from 100 companies, including device, foundry and fabless manufacturers.

-Mark Lapedus
EE Times

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