SAN FRANCISCO--Citing a new replacement cycle in wireless and PCs, the semiconductor industry is expected to grow a respectable 10% in 2003 over 2002, according to a report from WR Hambrecht + Co. LLC here.
The signs are encouraging for 2003, based on unit growth in 2002 and market activity in the fourth quarter of this year. In total, unit growth for semiconductors is forecasted to jump from 68 billion units in 2001 to 74 billion units in 2002, according to WR Hambrecht.
"We believe consumers are leading the way, by buying selective items such as notebook computers, digital cameras, DVD players and WLAN access points/NIC cards during the Christmas season," according to the report from the San Francisco-based investment banking firm.
"We also believe 2003 (10% growth) is going to be a little more encouraging primarily because of the improved (10-15% growth) wireless outlook, and 5-6% growth in the PC sector," the report said.
The report states that corporations will begin to upgrade their PCs in the second half of 2003 and well into 2044. "Within the wireless sector, we see Christmas seasonality holding up with cell phone growth in the range of 10-15%, with the expectation of a CQ4:02 sell through of 113-115 million phones," according to the report.
The growth is due to "continued strength in China, and also driven by GSM expansion by AT&T in the U.S., and Nokia's push with number of new models in Q1/Q2 of 2003," the report said.