Asian demand for electronics systems and semiconductors to buildthose products will roar at a compound annual growth rate of 26% for the next four years,
according to a new forecast by Cahners In-Stat Group, Scottsdale, Ariz.
In-Stat said China has become the largest electronics-producing country in the Asia Pacific
region, which excludes Japan. This year, China will produce $68.5 billion worth of goods
and grow at a compound annual rate of 18.3% between now and 2004, said the research
Taiwan's silicon foundry suppliers will grab up 40% of the ICs produced by 2010, predicted
In-Stat. South Korean companies will surge in growth primarily due to higher prices in
DRAMs, added the research firm.
In-Stat predicts that Asia Pacific will be the highest chip-consuming region over the next
five years. It added that the region is already spending more money on wafer fabs and
semiconductor equipment than any other market in the world.
Those predictions back up a mid-year forecast released last week by the Semiconductor
Equipment and Materials International (SEMI) trade group, which predicted that the Asian
Pacific region would end up spending $18.8 billion on chip production systems in 2002
compared $12.9 billion in 2000. Those figures top Japan ($7.6 billion in 2002 and $10.6
billion in 2002) and the North American market ($10.1 billion in 2000 and $13.45 billion in
2002). Chip makers in Europe are expected to spend $4.3 billion in 2002 on production
systems and $5.5 billion in 2002, according to the new SEMI consensus forecast.
"As the doom and gloom of the financial crisis continues to fade, the Asian semiconductor
industry is enjoying a revival of its own," said analyst Grant Johnson of In-Stat's
semiconductor service, in a statement.