Semiconductor sales revenues drop, electronic-display shipments forecast to grow

FEBRUARY 28--According to a soon-to-be-released study,RGB-262 New Chips for New Applications, from Business Communications Co. Inc. (BCC; Norwalk, CT; www.bccresearch.com), semiconductor sales revenues dropped by 32% in 2001. Not since 1985 has there been such a dramatic downturn in the industry.

The shrinking share of the personal-computer market may signal a saturation point. But it also may foreshadow a sea change in computing styles as computing power and portability options converge with a growing penetration of wireless technologies and products.

The semiconductor market is expected to reach $246 billion by 2006, as it grows at an average annual growth rate (AAGR) of 12.1% in the coming five years. The market for ICs, not including discretes, optoelectronics, and sensors, is expected to total $226 billion by the end of the forecast period, as it grows at an AAGR of 16.5% through 2006.

In another publication from BCC,RDDN01 Display Industry Review, the value of worldwide shipments of electronic displays was estimated at approximately $64 billion in 2001. Shipments are forecast to grow at an AAGR of 12.3% to reach $114.8 billion by 2006.

Worldwide CRT shipments are valued at $33.1 billion in 2001. They are expected to grow at an AAGR of 6.3% and reach $44.8 billion by 2006.

Penetration of flat-panel displays into the CRT market has begun. Flat-panel displays are currently estimated at $31 billion, accounting for 48.4% the total value. Their value is projected to grow at an AAGR of 17.6% and account for nearly 61% of the total value of electronic displays by 2006.