Semiconductor sales to rise

US-based Semico Research Corp believes that worldwide semiconductor sales will recover to reach 26.3% growth in 2003.

The company says that although the 32% downturn in 2001 was the worst in history, semiconductor sales have been increasing steadily since the third quarter of 2001. But, because sales in the first half of 2001 were still strong, 2002 sales will only experience single digit growth. Semico predicts in "2003 Return to Growth: End Markets the Key," ($1,495) that the overall economy will recover, leading to moderate end-use product demand. Coupled with very low inventory overhang, that demand will support its semiconductor sales forecast. The study provides a five-year forecast for six major end-use product sectors worldwide: computer, consumer, communication, automotive, industrial and military. It contrasts the 2002 semiconductor consumption TAM with the 2006 TAM for each of these sectors to identify products that will be key to semiconductor growth. Semico foresees stronger demand for notebook computers, servers, cell phone upgrades, emerging wireless applications such as WLAN, automotive electronics, broadband modems and a multitude of consumer products. Partly as a consequence of the expected increase in demand for semiconductors, the research corporation is equally "bullish" about the wafer market and predicts total wafer demand will increase at an annual rate of 19% through to 2004. According to "Wafer Demand Outlook: Tight Capacity Looms", ($3,500), following a number of fab closures and consolidations there could be capacity shortages in 2003 and 2004, particularly for leading edge technologies,