August 13, 2001 — In its mid-year report on the semiconductor industry, San Jose, CA-based Gartner Dataquest predicted semiconductor sales will be $168.1 billion for 2001, a 26 percent decline from the $226 billion logged in 2000.

“Based on guidance and early reports from some of the larger bellwether companies involved in PCs, storage and communications, the second half of 2001 will be dismal for the semiconductor industry,” says Mary Olsson, chief analyst for Gartner Dataquest’s worldwide semiconductor group.

As the industry enters the third quarter, Gartner reports varying developments across applications markets. ?Although overall growth in the consumer applications sector dropped from the two previous years of strong growth, sales of consumer application products in the United States is strong,? notes the market research firm.

On a brighter note, sales of video game hardware, software and accessories increased in the first half of 2001 in the U.S. consumer applications sector, according to Gartner. –Meg Villeneuve