SAN FRANCISCO Citing a new replacement cycle in wireless and PCs, the semiconductor industry is expected to grow a respectable 10 percent in 2003 over 2002, according to a report from WR Hambrecht + Co. LLC, based here.
The signs are encouraging for 2003, based on unit growth in 2002 and market activity in the fourth quarter of this year, the investment firm said. 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. "We also believe [10 percent growth in] 2003 is going to be a little more encouraging primarily because of the improved [10-15 percent growth] wireless outlook, and 5-6 percent growth in the PC sector."
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 percent, 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.