Semiconductor industry group projects recovery

The Associated Press
Thursday June 06, 2002

REDWOOD CITY – Worldwide semiconductor sales are expected to increase 3.1 percent in 2002 and jump 23.2 percent in 2003, according to a midyear forecast released Wednesday by an industry trade group. 

The Semiconductor Industry Association, which represents most U.S. chip makers, said the market is now in the initial phases of recovery after its most challenging year in history. 

“Our expectation is that the recovery will gain momentum in the second half of the year and continue with strong growth through 2003 and 2004,” said Dwight W. Decker, chief executive of Conexant Systems and a semiconductor association board member. 

Worldwide sales of all chips are expected to total $143 billion in 2002, $177 billion in 2003 and $213 billion — a 20.9 percent increase — in 2004. Another slowdown is expected by 2005. 

The growth will be fueled by increases in sales of cellular phones and personal computers as well as other digital consumer electronics equipment. 

The Asia Pacific market is leading the recovery. Sales are expected to increase 27 percent to $51 billion in 2002 — the only region that will see a year-over-year sales growth this year. 

The Americas, on the other hand, are expected to decline 4 percent to $35 billion in 2002 but grow 24 percent to $43 billion in 2003 and 22 percent to $52 billion in 2004. 

The Semiconductor Industry Association has represented U.S. chip manufacturers since 1977. Its members account for more than 90 percent of U.S. chip production.