JUNE 16--The worldwide semiconductor market should grow 10.1% this year, according to the Semiconductor Industry Association (SIA; San Jose, CA www.sia-online.org). This reflects a more modest expansion than the organization had projected last November.
In its semiannual market forecast, the SIA said sales should grow to $155 billion in 2003 before climbing 16.8% next year to $181 billion. In November, the group had foreseen a 19.8% expansion this year and 21.7% growth in 2004.
After the sales jump in 2004, the market should grow 5.8% in 2005 and 7% in 2006, the trade group said. Semiconductor sales rose just 1.3% in 2002 and fell 32% in 2000.
Slower than expected corporate spending on information technology products and the turmoil created by the war in Iraq led to the revised outlook, the association said.
SIA President George Scalise predicts that no one factor will be a growth catalyst. He cited several possible areas that could spark chip sales, including increasing demand for WiFi chips, microprocessors, and memory chips for new-generation cell phones. Scalise also noted the continuing trend of outsourcing chip manufacturing, including component sourcing and design services, from the Americas to the Asia-Pacific region, driven by lower costs overseas.
