August 22, 2003 – A Standard & Poors analyst forecasts strong sales growth in 2004 for the semiconductor equipment sector, following a moderate increase this year.

S&P’s biannual Industry Survey on Semiconductor Equipment predicts 5% sales growth this year, “followed by a much stronger increase in 2004.”

Survey author Richard Tortoriello, semiconductor equipment equity analyst for S&P’s equity research services division, points to two growth factors: continued economic improvement leading to a bump in corporate IT spending, and capacity utilization reaching 85%-90% by the end of 2003, the perceived tipping point at which semiconductor companies traditionally invest in new capacity.