BRUSSELS, Belgium " The World Semiconductor Trade Statistics (WSTS) organization has raised its chip market predictions for the next three years, according to the European Semiconductor Industry Association.
With the threat from Sars retreating for now, the organization sees double-digit percentage growth year-on-year for the worldwide market from 2003 through 2005, according to its fall 2003 forecast.
The market is now poised to grow 14.2 percent in 2003, reaching $160.7 billion. Market growth is expected to accelerate through 2004 to 19.4 percent, taking the annual revenues of $191.9 billion. In 2005, the market is forecast to grow 12.6 percent, to $216.1 billion, beating the previous record market of $204.4 billion scored in 2000, ESIA said.
A minor fallback is foreseen for 2006, although total worldwide sales are expected to remain above the $200 billion mark.
In June, WSTS predicted 11.5 percent growth in 2003, 18.4 percent growth in 2004 and 7.9 percent growth in 2005.
As a result, the global market is now expected to reach $216.1 billion in 2005. In June, WSTS was predicting it would reach just over $200 billion, below the 2000 high-water mark.
WSTS's June predictions were made towards the end of the Sars in Asia and amid concerns that the illness would hamper the semiconductor industry and the global economy. Those fears have since receded for now.
The personal computing, wireless communications and digital consumer sectors are driving the current upturn.
The flash memory market is set to grow 41.4 percent in 2003 and 38.0 percent in 2004 while the DRAM market is expected to grow 10.1 percent in 2003 and 29.1 percent in 2004.
The chip market for wireless communications, including DSPs, is expected to grow 29.2 percent this year and 25.3 percent in 2004.