On what Gartner Inc. called a "relatively strong Q1 bolstered by better-than-expected semiconductor sales in March," the research firm today stated its worldwide semiconductor market forecast for 8.3 percent growth in 2003, with revenue totaling $168 billion.

This forecast is down slightly, though, from Gartner's previously stated estimate of 8.9 percent growth it made in Q1.

"With quarterly sequential growth at about negative 3.5 percent in the first quarter of 2003, but likely to turn mildly positive in the second quarter, it appears that the industry is capable of growing in the high single digits this year," Richard Gordon, research VP for Gartner's semiconductor research group, said in a statement. "However, even though some of the geopolitical uncertainty that has been dogging the global macroeconomic environment receded with the end of the war in Iraq, and with the severe acute respiratory syndrome (SARS) outbreak seemingly more under control, indications about the level of demand for semiconductors in the second half of 2003 remain stubbornly elusive."

Gartner further said that businesses are not feeling confident enough to make investment decisions, taking a cautious outlook and holding off the long-awaited corporate PC replacement cycle. However, digital cellular handsets, flat-panel displays and digital video consumer products are expected to have strong growth in 2003, the firm said.

The cellular phone handset application market continues to keep the semiconductor industry's head above water, driving above-average device market growth for memories, DSP-based ICs and CMOS image sensors, Gartner said. Strong growth is also expected in the liquid crystal display (LCD) driver market and in application-specific devices for consumer electronics.

By: DocMemory
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