Dataquest Expects 15% Growth In Chip Sales This Year

Computergram International, Feb 3, 1999

Finally emerging from a three-year slump, the worldwide semiconductor market is set to see 15% revenue growth this year, according to research group Dataquest Inc. Revenue for 1999 is expected to reach $154.5bn, mostly due to a boom in the second half of the year. Dataquest analysts say they anticipate an increase in revenue beginning in the third quarter, helped along by "protective ordering" in advance of potential year-2000 problems, followed by a strong fourth quarter.

These projected atypical second-half ordering patterns are expected to offset potential difficulties associated with lower PC revenue and a weaker US electronics market. Other positives for the year are the anticipated firming of DRAM pricing and a stronger yen/dollar exchange rate. Dataquest previewed its outlook for the year ahead of its March conference at which it will provide views on the near-term future for the semiconductor market and other sectors of the technology industry. Dataquest's observations come a month after the Semiconductor Industry Association held its own symposium at which industry brass also spoke of a legitimate recovery in the coming 12 months. Projections emerging from the SIA conference were a bit more reserved, however, with the prevailing estimates looking for 1999 revenue growth in the neighborhood of just 7.0%