The Japanese electronics industry is projected to grow 2% in 1999, after falling 6.2% this year, according to a just-released industry report.
The Electronics Industry Association of Japan said an anticipated bottoming out of the Asian financial crisis and the Japanese recession hopefully would turn around electronics production next year.
EIAJ predicted output of chips and flat panel displays, lumped together in an electronics device category, will rise 3.2% in 1999 to an estimated $85 billion. Electronic device production fell 6.8% this year to $82 billion.
Memory chips are expected to increase 4% in 1999 to $7.3 billion, after the value of production plunged 21% this year. Logic chip output is forecast to grow 3.8% to $15 billion next year after a 5% drop in 1998 to $14 billion.
Industrial electronic equipment, including PCs and communications gear, is forecast to rise 1.4% to $110 billion, after falling 5.6% this year to $108 billion.
However, EIAJ expects PCs and business machines to continue to fall another 1.6% in 1999, although all other equipment in the category is expected to grow.
Consumer electronics is expected to inch up 0.6% next year to $18.2 billion, after a 6% decline in 1998 to $18.1 billion.