Double-digit growth forecast for chips.

Purchasing, June, 1999

The worldwide semiconductor industry will grow from $153 billion in 1999 to $244 billion in 2003, according to an updated forecast from market researcher Dataquest. Driving that growth will be personal computers, consumer electronics, and communications equipment. The dram market will continue to shape the overall semiconductor industry.

"A key assumption to the forecast is a dram shortage starting in late 2000, which will cause dram revenue to peak in 2001," says Ron Bohn, director of research for Dataquest's worldwide semiconductor group. "After that, the dram cycle of oversupply will repeat itself." The three drivers of the semiconductor market are PCs, consumer electronics, and communications equipment. They account for about two- thirds of total...

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