Gartner Inc. raised its predictions for the 2003 semiconductor market amid a strong second quarter reported by many chips companies. The market research firm has up the 2003 worldwide semiconductor growth estimate to 11.2 percent or $173 billions from previous prediction of 8.3 percent or 168 billions.

Gartner said that a healthy second quarter of 2003 indicated the semiconductor market was continuing to recover from the most prolonged slump in its history and prompted the company to boost its predictions.

Gartner analysts said that in front-end semiconductor manufacturing, silicon demand is increasing, overall wafer fab utilization now exceeds 80 percent and foundry wafer pricing has firmed up. In packaging and assembly, overall utilization rates continue to increase on a monthly basis and leading-edge capacity has become tight as the demand for advanced packaging solutions grows.

In device markets, inventories are back to normal levels, pricing has stabilized, and in some cases, there are shortages of critical components. In application markets, the digital cellular handset market remains robust, demand for digital consumer electronics products has been strong and there are early signs that the corporate PC replacement cycle has begun.

By: DocMemory
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