Chip market watchers raise forecasts

The Semiconductor Industry Association (SIA) and World Semiconductor Trade Statistics (WSTS) have revised upwards their forecasts for growth this year. The SIA is now predicting 20 per cent growth and WSTS 25 per cent.

Both organisations were encouraged by March 2004 sales of semiconductors which were 32.3 per cent up on March 2003.

The $16.28bn worldwide sales for March 2004 were an increase of 4.4 per cent from the $15.58bn of February 2004, said the SIA.

For the first quarter of 2004, traditionally a weak quarter, sales were $48.8bn compared to $36.4bn in Q1 2003 and $48.1bn in Q4 2003.

“The strong sales in the first quarter are very encouraging,” said SIA president George Scalise. “Based on the strong first-quarter results, it now appears likely that growth for 2004 will exceed 20 per cent.”

Sales of microprocessors, DRAMs and PLDs showed sequential growth (March over February) of 5.3 per cent, 5.9 per cent and 12.9 per cent respectively.

According to WSTS, the geographic regions showed March 2004 growth over March 2004 of: 45.8 per cent for Asia Pacific, 25.1 per cent for the US, 24.7 per cent for Japan and 24.4 per cent for Europe.

Worldwide unit growth March 2004 on March 2003 was 21 per cent and pricing growth was nine per cent said WSTS.

WSTS said the applications driving growth were communications (wireless as well as wired), PC related products and automotive.