November 8, 2001 — SAN JOSE, CA — The ailing semiconductor industry will be revived in the coming months, says the Semiconductor Industry Association (SIA) in its annual forecast released this week.

According to the SIA report, the industry will begin to recover from the latest downturn in the fourth quarter and continue to see slow growth in 2002. By 2003, growth patterns for the global semiconductor industry will return to normal with more growth expected in 2004.

“History shows that through upturns and downturns, the industry has always grown over the long-term, and while the exact timing and shape of the coming recovery is hard to predict, recovery is certain,” said Rich Templeton, COO and executive vice president of Texas Instruments. Templeton delivered the latest forecast at the SIA’s annual dinner and award ceremony in San Jose, California.

Although global semiconductor sales will decrease to $141 billion this year, the industry will see a 6 percent growth in 2002 to $150 billion. That number will grow to $181 billion in 2003, and $218 billion, or 21 percent, in 2004, according to SIA.

The American market is expected to see a decrease 43 percent to $36 billion this year. In 2002 however, it will see a 4 percent growth to $38 billion. In 2003 and 2004, it will reach $46 billion and $56 billion respectively.

The European market should see a 29 percent decrease this year to $30 billion, followed by a 1 percent growth period in 2002. In 2003, Europe should see an increase to $37 billion and an increase to $44 billion in 2004.

In Japan, the industry will decrease to $35 billion this year, down 26 percent. Next year it will see 4 percent growth to $36 billion. In 2003, it will increase 20 percent to $43 billion and in 2004, it will again increase 20 percent to $52 billion.

Finally, in the Asia Pacific market, sales this year will decrease 23 percent to $39 billion. However, those numbers will quickly grow with a 14 percent increase to $45 billion in 2002, followed by a 23 percent increase to $55 billion in 2003 and a 21 percent increase to $67 billion in 2004.