Gartner Dataquest forecasts worldwide semiconductor market to grow 12% in 2003

NOVEMBER 6--The worldwide semiconductor market is forecast to post double-digit growth in 2003, with revenue totaling $171.8 billion, a 12.1% increase from 2002 estimates, according to Dataquest Inc., a unit of Gartner Inc. (www.gartner.com).

NOVEMBER 6--The worldwide semiconductor market is forecast to post double-digit growth in 2003, with revenue totaling $171.8 billion, a 12.1% increase from 2002 estimates, according to Dataquest Inc., a unit of Gartner Inc. (www.gartner.com). Gartner analysts presented these findings during the Gartner Dataquest Technology Pipeline conference, taking place November 5-7 in Los Angeles, CA.

In 2001, worldwide semiconductor revenue totaled $152.5 billion, a 32% decline from 2000. In 2002, the market is beginning to see signs of recovery, as revenue is projected to reach $153.3 billion, a 0.5% increase from 2001.

"The semiconductor market recovery in 2002 has progressed as expected, with strong growth in the first half of 2002, as inventories were replenished, and weaker growth in the second half of the year," said Richard Gordon, principal analyst for Gartner Dataquest's semiconductor research group. "Although semiconductor sales in the third quarter of 2002 held up reasonably well, benefiting from a degree of seasonal strength, that strength has not carried forward into the fourth quarter and highlights the poor state of electronic equipment production."

Gartner Dataquest analysts said that while PC unit production growth has stalled in 2002, a corporate PC replacement cycle is becoming overdue and cannot be put off much longer.

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