June 11, 2003 – Palo Alto, CA – The worldwide semiconductor market should grow 10.1% this year, according to the Semiconductor Industry Association (SIA), and reported by Dow Jones. This reflects a more modest expansion than the organization had projected last November.

In its semiannual market forecast, the SIA said sales should grow to $155 billion in 2003 before climbing 16.8% next year to $181 billion. In November, the group had foreseen a 19.8% expansion this year and 21.7% growth in 2004.

After the sales jump in 2004, the market should grow 5.8% in 2005 and 7% in 2006, the trade group said. Semiconductor sales rose just 1.3% in 2002 and fell 32% in 2000.

Slower than expected corporate spending on information technology products and the turmoil created by the war in Iraq led to the revised outlook, the association said.