Semico forecast sees industry sales growth decline in 2001, 2002

Phoenix, Arizona–Total worldwide semiconductor sales will reach $412 billion by 2005, with bumps along the way, according to Semico Research Corp.’s just-released quarterly industry forecast.

Semiconductor sales growth will decline to 18% in 2001, down from 37.5% in 2000, reports Semico. Single-digit growth is predicted for 2002.

Demand is not being cited as a cause for concern. Semico is forecasting end-use market growth through 2002, although at a slower rate. New fabs, of which there are expected to be quite a few, and increased efficiency may drive down ASPs. In addition, a virtual capacity increase may result from the conversion to 300mm wafers, die-shrinks, and yield enhancements. Then, Semico believes that semiconductor sales will return to double-digit growth rates in 2003.


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