LONDON--The semiconductor upturn is back on track and the market will grow 18 percent in 2003 over 2002, according to a new report from Future Horizons today (November 28, 2003).
In effect, Future Horizons has reverted back to its previous forecast for semiconductor growth in 2003. Despite "cripplingly low" average selling prices (ASPs) for most semiconductors, market research and analysis group Future Horizons in July predicted a strong bounce-back and solid growth for the chip market over the next two years.
At that time, however, Future Horizons lowered its forecast for chip market growth for 2003 to 13.1 percent, down from the 18 percent it was predicting as late as June (see July 30 story).
Now, the Sevenoaks, England-based research firm sees some new and positive signs in the marketplace. In September, for example, worldwide chip sales were up 2.4 percent over August and up 19.6 percent year-over-year, according to Future Horizons. And although IC units were down 3.7 percent in September, ASPs were up 6.4 percent, according to the report.
What's more, the month of October exceeded expectations in terms of worldwide semiconductor component sales, which were US$15.43 billion, up 6.8 percent from the previous month according to data from the World Semiconductor Trade Statistics organization today (see November 28 story).
"As 2003 enters the final quarter of the year, our January 2003 18 percent growth forecast looks increasingly assured," said Malcolm Penn, founder and chairman of Future Horizons, in the company's report issued today.