In-Stat/MDR predicts optimistic outlook for semiconductor industry

MAY 2--In a presentation delivered at the Embedded Processor Forum, In-Stat/MDR (a unit of Cahners Business Information; www.instat.com) announced its newest semiconductor industry forecast. Chris Van Gaal, the high-tech research firm's senior director of content development, reported that, as predicted, 2002 will continue to be a corrective year for the industry.

Worldwide semiconductor sales for 2002 are forecast to decline an additional 4%-5% from 2001 despite sequential quarterly growth. However, in 2003, an optimal combination of inventory depletion, order rates, and market dynamics will result in a 30.7% increase in worldwide semiconductor sales over the year prior.

Said Van Gaal, "There are many indicators that signify a marked turnaround in an industry that experienced a 32% decrease in sales last year. As they are tied very strongly to the semiconductor industry, a rise in both regional and global gross domestic product (GDP) and order rates in key end-use segments are a good indication of a brighter future." However, this does not mean that the industry will not continue to experience its telltale boom-and-bust cycles.