June 3, 2003 – The World Semiconductor Trade Statistics (WSTS) organization expects the worldwide semiconductor industry to grow 11.5% to $156.9 billion in 2003, according to Dow Jones. The trade group’s projection was lower than its previous forecast, made last October, for 16.6% growth.

The global chip market reached $141 billion in 2002, slightly below last fall’s forecast of $142 billion. 1Q03 also remained somewhat below expectations, the trade group said.

The Asia Pacific region, which was assumed to be the driving force for a semiconductor market recovery, appears hampered by the impact of the SARS epidemic on the general economy, the WSTS said. The current forecast implies SARS will be contained by the end of 3Q03.

Sensors, digital signal processors, and flash EEPROMs (electrically erasable programmable read-only memory) will show the highest growth rates in 2003, well above 25%. All other products will be closer to or below the overall market growth rate, the trade group said.

The WSTS expects 2004 to be the peak year for the semiconductor market, with the growth rate reaching 18.4% and slowing after that. A growth rate of 7.9% is projected for 2005.