The firm continues to expect worldwide semiconductor revenue to reach $164.2 billion in 2003, a 16.7 percent increase over 2002's figure, driven by a 10.9 percent growth in unit shipments and a 5.3 percent increase in ASPs. This revenue forecast has remained unchanged in In-Stat/MDR's last two semi-annual forecasts, the company said.

"Although the first half of 2003 ran slightly below our expectations the second half has started strong and is expected to exceed earlier expectations, resulting in no net change to the overall annual forecast. Growth will continue throughout 2004 when we expect that worldwide revenue will reach a new record high of $206.8 billion, 25.9% ahead of 2003," said Steve Cullen, principal analyst and director of semiconductor services at In-Stat/MDR, in a statement.

In-Stat/MDR said that unlike past recoveries, which were driven by specific products, such as PCs or mobile phones, this recovery is more broadly based, making it slower, but less susceptible to changes in specific end product markets.

In-Stat/MDR measured capacity utilization to be 85.9 percent in the second quarter of 2003 but said that with capital additions having remained at low levels and most semiconductor manufacturers exhibiting caution in their planning for the future, further economic growth is expected to drive the utilization rates into the 90 percent range.

In-Stat/MDR said that although ASPs have begun to increase it does not foresee a long-term rise in ASPs.

By: DocMemory
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