November 8, 2001 – San Jose, CA – Spurred by sales of personal computers, wireless communications solutions and consumer products, the global semiconductor industry will recover from the inventory build that occurred in 2000 and the weak end-market equipment demand in 2001.

The industry will begin to recover in the 4Q01 and continue with slow growth throughout 2002. It will then return to a traditional growth pattern with 21% consecutive increases in sales for 2003 and 2004, according to the Semiconductor Industry Association (SIA).

In its annual semiconductor forecast, SIA projected that while global semiconductor sales would decrease 31% this year to $141 billion, the industry would conversely report growth of 6% in 2002 to $150 billion, 21% growth in 2003 to $181 billion, and 21% in 2004, totaling $218 billion worldwide.

At the SIA Annual Forecast and Award Dinner 2001 held in San Jose, CA, Texas Instruments’ CEO and Executive VP Rich Templeton delivered the annual forecast address which stressed how important ICs have become in our world. “From a simple idea to make electronic components that were less expensive and easier to assemble, semiconductors have grown to become pervasive throughout business and private life.” He added, “With vision and tenacity, we will continue extending the reach of semiconductors into daily life – with corresponding expansion of this industry.”

Semiconductor product categories that will lead this expansion include digital signal processors (DSPs), Analog, MOS Logic, microprocessors, Flash and microcontrollers.

“History shows that through upturns and downturns, this 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,” concluded Templeton.