NOVEMBER 15--The Semiconductor Industry Association (SIA; San Jose, CA; www.sia-online.org) has released its 2002--2005 annual forecast, projecting an industry recovery with double-digit growth over the next two years. Worldwide sales of semiconductors are expected to increase by 1.8% in 2002, by 19.8% in 2003, and by 21.7% in 2004.
AMD chairman W. J. ("Jerry") Sanders III said, "The long-awaited recovery is under way. We believe the next several years will see steady growth following the industry's steepest-ever decline in 2001." Sanders noted that worldwide semiconductor sales are now projected to surpass the peak revenues of 2000 in 2004.
"It is now clear that 2000 was a bubble that distorted the industry's compound annual growth rate, pushing it above 16%," said Sanders. "We believe that compound annual growth rates in the range of 8% to 10% will be the norm going forward over the longer term. This will represent a sea change for our industry. We can no longer count on the proverbial rising tide that lifts all boats. Nevertheless, a huge industry with compound annual growth averaging 8% to 10% will continue to offer opportunities for significant growth for companies that consistently deliver desirable products for their target customers," he added.