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Chip market off 13.5 per cent in 2001

Chip market off 13.5 per cent in 2001

The world's semiconductor market will decline 13.5 per cent in 2001 with the Americas and the Asia/Pacific chip markets being hit the hardest, a new study released this week suggests.

According to the World Semiconductor Trade Statistics (WSTS), the market will drop to $US176.8 billion in 2001 from $204.4 billion in 2000. This contrasts with a forecasted growth rate of 20.3 per cent for 2001 during the third quarter 2000, according to the organisation that represents about 90 per cent of the world semiconductor industry in a statement.

The slowdown in the US economy and inventory problems by semiconductor makers contributed to the negative growth rate, said Bill Jewell WSTS's Americas vice chairman and a market analyst for Texas Instruments. The first quarter of 2001 saw semiconductor revenue drop 19 per cent, the sharpest decline since the WSTS's creation in 1982, he said.

"A lot of that was due to inventory corrections," Jewell said.

The WSTS suggests that the downturn in semiconductor sales should come to an end by the middle of 2001, and the third quarter of the year should offer positive growth in all major global markets and product segments. Microcomponents and memory chips will lead the market rebound, the WSTS said.

The regional breakdown is as follows:

-- Americas: $US64.1 billion in 2000, $50.4 billion in 2001 and $57.3 billion in 2002.

-- Europe: $US42.3 billion in 2000, $39.8 billion in 2001 and $45.3 billion in 2002.

-- Japan: $US46.7 billion in 2000, $43.4 billion in 2001 and $48.7 billion in 2002.

-- Asia/ Pacific: $US51.3 billion in 2000, $43.3 billion in 2001 and $50.1 billion in 2002.

-- Totals for the world are $US204.4 billion in 2000, $176.8 billion in 2001 and $201.4 billion in 2002.

The growth rates for the regions all decline in 2001:

-- Americas: down 21.4 per cent.

-- Europe: down 5.9 per cent.

-- Japan: down 7.2 per cent.

-- Asia/Pacific: down 15.6 per cent.

-- The world total is down 13.5 per cent for 2001.

In contrast, the WSTS expects the semiconductor market to rebound in 2002 and grow 13.9 per cent to $US201.4 billion.


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