+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
 
News Article

Semiconductor Industry Association Reports Global Semiconductor Market Tops $200 Billion Mark for First Time

Source: Semiconductor Industry Association

Annual Forecast Reveals Chip Market to grow 37 percent in 2000, 2003 sales to reach $319 billion

SAN JOSE, Calif. Spurred by sales of communications solutions for data networking, broadband, wireless, optoelectronics and continued strong demand for the personal computer, the global semiconductor industry will exceed $200 billion for the first time in 2000 and grow to $319 billion in the next three years, the Semiconductor Industry Association (SIA) reported today.

Releasing its annual semiconductor forecast Wednesday, the SIA projected that global semiconductor sales would increase 37 percent this year to $205 billion, and grow 22 percent next year to $249 billion.

"Responding to the challenges associated with the redefining and revitalization of the global communications system will propel the semiconductor industry toward the $1 trillion goal in the next decade," said Wilfred J. Corrigan, LSI Logic chairman and chief executive officer. "The PC is still a major growth driver, but for much of the industry there are faster growth opportunities associated with the new information-based economy."

Semiconductor product categories that will directly benefit from the new wired and wireless applications include: Flash memory, standard cell ASICs, digital signal processors (DSPs), programmable logic devices (PLDs), analog, and optoelectronics.

Corrigan, who delivered the annual forecast address at the SIA s 24th Annual Forecast and Award Dinner, said that the wide variety of worldwide communication opportunities in markets distributed around the globe would help temper and moderate future semiconductor business cycles.

"Not only are semiconductors ubiquitous and indispensable to our everyday lives, they are being used in an even greater variety of communications, Internet infrastructure, and handheld applications," said SIA president George Scalise. "While traditionally there have been two dominant markets around the world, in this forecast, we see a broadening of product demand coming from all geographic regions."

World Markets

While the Americas will remain the world s largest market, Asia-Pacific is the fastest growing market. A decade ago, the two largest markets, the United States and Japan, made up approximately two-thirds of the global semiconductor market. Today, the two largest markets, the Americas and Asia-Pacific, comprise less than 60 percent of the worldwide chip market, demonstrating the growing global demand of silicon solutions.

Americas Market: The Americas will increase 34 percent this year to $64 billion, 21 percent next year to $77 billion, 9 percent to $83 billion in 2002, and increasing 16 percent in 2003 to become a $96 billion market.

Europe Market: The communications dominated Europe market will grow 33 percent this year to $42 billion, 21 percent next year to $51 billion, 10 percent in 2002 to $57 billion, and growing 17 percent in 2003 to reach $66 billion.

Japan Market: The Japan market will increase 42 percent this year to $46 billion, 22 percent next year to $56 billion; 10 percent in 2002 to $62 billion; and totaling $72 billion with 16 percent growth in 2003.

Asia Pacific Market: This region will grow nearly 41 percent this year to $52 billion, 24 percent next year to $65 billion, 12 percent in 2003 to $72 billion, and $85 billion in 2003, an 18 percent increase.

Semiconductor Product Categories:

Optoelectronics: The optoelectronics market, which includes laser devices and image sensors, is directly tied to the Internet bandwidth issue. This market will grow 68 percent this year to $10 billion, 30 percent next year reaching $13 billion, 19 percent in 2002 to $15 billion, and in 2003, grow 28 percent to $19 billion.

Logic: This year s $34 billion global logic market, which is being driven primarily by communications, will grow 48 percent this. This market will grow 26 percent next year, to $43 billion, 13 percent in 2002 to $49 billion, 13 percent to $56 billion in 2003. The logic market - standard cell, gate arrays and PLDs - will grow at a 17 percent compound annual growth rate during the next three years.

Microcontrollers: Digital signal processors (DSPs) are one of the fastest growing segment of the global microcontroller market and are expected to grow 48 percent to $6 billion this year, 33 percent next year, 22 percent in 2002, and 28 percent to $13 billion in 2003. The microcontroller market is expected to grow 35 percent this year to $19 billion, 25 percent next year to $24 billion, 13 percent to $27 billion in 2002, and in 2003, grow 29 percent, increasing sales to $34 billion.

Flash Memory: Flash memory devices are key components for wireless handsets, digital imaging, GPS systems and other applications. The flash memory sector will more than double in three years, growing an incredible 130 percent this year to $10 billion, 44 percent next year to $15 billion, 21 percent in 2002 to $18 billion, and increasing 24 percent to $23 billion in 2003.

Analog: The $31 billion global analog market, a key component for telecommunications, will grow in-line with the industry during the next three years. The sector will increase 39 percent this year, 20 percent in 2001 to $37 billion, 10 percent in 2002 to $40 billion, and increase 15 percent to $47 billion in 2003.

Microprocessors: Microprocessors can be most frequently found in personal computers and embedded applications. This year the microprocessor market will grow 11 percent to $30 billion, 6 percent in 2001 to $32 billion, 11 percent in 2002 reaching $35 billion, and in 2003, increase10 percent to become a $39 billion market.

DRAM: The $31 billion global DRAM market will demonstrate its historical volatility during the next three years. The DRAM market will grow 48 percent this year, 34 percent next year to $41 billion, 5 percent in 2002 for a total of $43 billion, and 21 percent to $52 billion in 2003.

Discretes: Discrete components will grow 31 percent this year to $18 billion. The worldwide discrete market, which includes diodes, power transistors, rectifiers, thyristors and other discrete categories, will grow to 13 percent next year to $20 billion, 4 percent in 2002 to $21 billion, and increase 7 percent in 2003 for a $22 billion discretes market.

About the SIA

The SIA is the leading voice for the semiconductor industry and has represented US-based manufacturers since 1977. SIA member companies comprise more than 90 percent of US-based semiconductor production. Collectively, the chip industry employs a domestic workforce of 284,000 people.

For one year, a webcast of the SIA Semiconductor Forecast press conference may be viewed at http://webevents.broadcast.com/cahners/sia2001forecast/home.asp.

To download the slides of this forecast or for additional information about the SIA, go to www.semichips.org.

CONTACT: Semiconductor Industry Association Molly Marr/Doug Andrey, 408/573-6600 mmarr_sia@attglobal.net , dandrey_sia@attglobal.net

or VCPR, inc., Lisa Kelaita/Denny Brisley, 650/340-6766 lkelaita@vcpr.com , dbrisley@vcpr.com

 

Semiconductor Industry Association
Molly Marr/Doug Andrey, 408/573-6600
mmarr_sia@attglobal.net , dandrey_sia@attglobal.net
or VCPR, inc., Lisa Kelaita/Denny Brisley, 650/340-6766
lkelaita@vcpr.com , dbrisley@vcpr.com
 
E-mail: lkelaita@vcpr.com
Web site: http://www.semichips.org
×
Search the news archive

To close this popup you can press escape or click the close icon.
×
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: