FEBRUARY 10--The Semiconductor Industry Association (SIA) is predicting that semiconductor revenues will rise 19.8% this year, reaching $169.3 billion. SIA president George Scalise said 2002 was a "recovery year" that saw global semiconductor sales reach $12.5 billion in December, bringing total revenue to $140.7 billion for the year. During the year's final quarter, revenue rose 1.9% sequentially to $37.6 billion, following increases of 5.6%, 5.8% and 8.2% in the first three quarters of 2002. "The recovery that began in 4Q01 continued throughout 2002, producing 1.3% growth in this turnaround year," stated Scalise.
"This is remarkable performance in the face of lackluster demand in the information technology market." Throughout the year, the worldwide wireless sector recorded the most vigorous growth. Unit sales of handsets grew by double- digits in 4Q, producing growth of 13.2% in flash and 6.8% in digital signal processors. New subscribers continue to set records in Asia, particularly in China, which is adding some 5 million new users each month. PCs continue to be the largest end market for semiconductors, accounting for 30% of total chip consumption. During the December quarter, due to increased PC demand, microprocessors and DRAMs were up 10.1% and 7.6% respectively.
"We expect the momentum built throughout 2002 in both cell phones and PCs to increase in 2003," stated Scalise. "As a result, for the first time since 2000, we believe IT spending on hardware will register an increase." The consumer sector, including DVDs and digital cameras, continues to drive new growth, especially in application specific products. Asia Pacific continues to be the world's fastest growing market, recording a 29% increase in chip sales for the year, pushing it past the Americas as the world's largest market, with a 36% share. For 2002, chip sales declined 13% in the Americas, 8% in Japan, and 8% in Europe from 2001 levels, as electronic equipment production continues an unprecedented migration to facilities in the Asia Pacific region.
