Analysts expect higher chip sales growth in 2003

Analysts expect higher chip sales growth in 2003

Worldwide revenue from chips will grow almost 20 per cent in 2003, according to the Semiconductor Industry Association (SIA). This was despite anaemic growth in chip sales in 2002 .

Revenue from sales of semiconductors worldwide reached $US140.7 billion in 2002, a 1.3 per cent increase from revenue of $US138.9 billion in 2001, but still well off the benchmark of $US204.3 billion in chip sales in 2000.

The SIA predicted that worldwide revenue would reach $US169.3 billion in 2003. This was based on the building momentum behind PC and cell phone sales and a prediction of increased IT spending.

A recent poll of chief information officers (CIOs) agreed with the SIA. Just over half of the survey respondents said they were currently replacing their PCs or had plans to do so during 2003.

PC sales accounted for 30 per cent of the total number of chips sold worldwide in 2002, the SIA said.

CIOs had been reluctant to upgrade their PCs due to shrinking budgets, it said, and most applications were working perfectly well on older PCs.

The SIA is hoping momentum from a strong fourth quarter carries over into the new year.

PC processors revenue grew 10.1 per cent in the fourth quarter, and DRAM (dynamic memory) for PCs grew 7.6 per cent. Flash memory revenue, an important component of cell phones, grew 13.2 per cent.

Asia-Pacific accounted for the highest amount of revenue growth in 2002. There was a 29 per cent jump in revenues from that region and an increasing number of chip production facilities made it the world's largest market for semiconductors with 36 per cent of the market. Revenue declined 13 per cent in the Americas, 8 per cent in Japan, and 8 per cent in Europe, the SIA said.

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