Asian semiconductor industry continues growth

MARCH 24--The Asia-Pacific region's semiconductor industry is expected to grow 13.2% in 2003 to achieve sales of $64.9 billion. From 2002 to 2007, the industry's sales are expected to grow at a compounded annual growth rate of 12.6% to $103.9 billion, according to the latest forecast by Gartner Dataquest (www.gartner.com). The war against Iraq could dampen global consumer demand for electronics, but a recovery is expected in the second half of 2003, Dataquest said.

In 2003, the Asia-Pacific region continues to record the highest growth in revenue and is also the largest semiconductor-consuming region, accounting for slightly more than one-third of the global revenues, said Dataquest analyst Philip Koh. "China/Hong Kong, and South Korea will continue to lead the region, while we expect to see more Taiwanese electronic-equipment manufacturers shifting their high-volume low-end production to China, in particular," he said.

China's semiconductor market from 2002 to 2007 is expected to expand at a compounded annual growth rate of 15.9%, South Korea's at 16.3%, Taiwan's at 8.7%, Singapore's at 5.3% and, Malaysia's at 8.3%, reported Agence France Presse. "Low-cost labor and availability of raw materials stimulate continuous shifting of electronic-equipment production to China by global equipment manufacturers, which in turn fuel demand for semiconductor-device consumption in the country," said Dorothy Lai, a Gartner analyst.