The Hindu : Semiconductor global sales to rise 10 p.c.

Online edition of India's National Newspaper
Saturday, Jun 14, 2003

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Semiconductor global sales to rise 10 p.c.

By Our Special Correspondent

BANGALORE JUNE 13. In its mid-year forecast, the San Francisco based Semiconductor Industry Association (SIA) has predicted a rise of 10.1 per cent in the global sales of semiconductors to $154.9 billion in 2003. This is much less than the 19.8 percent growth in 2003 that the association had forecast back in November 2002.

The reasons cited are the lower global spending in information technology, the SARS epidemic and the Iraq war. However, the state of the industry is much better than in 2001 when global sales fell 34 per cent to $139 billion.

The SIA forecast that chip sales next year will rise 16.8 per cent to $180.9 billion, followed by a 5.8 per cent increase to $191.5 billion in 2005 and a 7 per cent rise to $204.9 billion in 2006. This would push the industry's yearly sales slightly past its highest-ever level in 2000.

The trend of chip manufacturing and consumption moving from the Americas to Asia Pacific will continue, reflecting the outsourcing of electronic equipment manufacturing, including component sourcing and design services to the Asian region due to lower costs there.

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