Business Wire: Cahners In-Stat Group: Asia Pac Tigers Roar as Regional Chip Consumption Skyrockets

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Cahners In-Stat Group: Asia Pac Tigers Roar as Regional Chip Consumption Skyrockets

Business Editors, Technology Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--July 17, 2000

The high-tech Internet revolution is contributing to spectacular economic recovery in Asia Pacific, according to Cahners In-Stat Group, a high-tech market research firm.

Following a financial battering from the 1997-98 economic crisis, the region's emerging economies have rebounded strongly with renewed optimism and a commitment to boost the electronics industry as a catalyst for region-wide growth. According to Grant Johnson, Industry Analyst for In-Stat's Semiconductor Service, "As the doom and gloom of the financial crisis continues to fade, the Asian semiconductor industry is enjoying a revival of its own."

Asian demand for end-use electronic products is soaring and chips are being consumed at a record rate. As a result, Asia Pacific is now the fastest growing semiconductor-consuming region in the world, with a forecasted compound average growth rate (CAGR) of 26.0% through 2004. In-Stat predicts that Asia Pacific will be the highest chip-consuming region over the next five years as it is already spending more money on fab and semiconductor equipment than any other in the world. Specifically, Taiwanese and South Korean semiconductor companies are increasing capital spending this year at a faster rate than those in any other country or region.

In-Stat also finds that:

-- China has become the largest electronics producing country in

Asia Pacific. This year, China will produce $68.5 billion

worth of goods and grow by a CAGR of 18.3%.

-- Structural problems still persist despite the region's

spectacular rebound and economic growth.

-- The trend toward "outsourcing" will lead Taiwan's foundry

business to account for about 40% of total ICs produced by

2010 and a recovering DRAM market will boost the fortunes of

South Korea.

The Report Asia Pacific: Tigers Roar Once More (No.SI0005SF) analyzes Asia Pacific's leading economies and presents a semiconductor forecast for the region. To purchase this report or for additional information, please visit http://www.instat.com/catalog/cat-si.htm#si0005sf or call Courtney McEuen at 480/609-4533; cmceuen@instat.com. The report price is $3,995 USD.

Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.