The forecast is a revision from the 16 per cent originally estimated in April and was prompted by robust growth in the second half of 2003.

Its growth forecast for this year was sharply revised from 9.0 per cent to 14 per cent.

Over a five-year period from 2003, the research house expects the semiconductor market to grow at a compounded annual growth rate of 12.5 per cent, with revenues seen rising to $282 billion in 2008 from $160 billion this year.

'As 2003 closes, growth expectations for the semiconductor market are on the rise, particularly after a very strong recovery in the second half of the year,' the technology research house said in a statement.

'Stronger-than-expected mobile phone and PC shipments have stabilised average selling prices and increased capacity utilisation rates among suppliers,' it said.

It said sales of mobile phones and computers should grow at double-digit rates this year and next.

The Asia-Pacific dominates the global production and demand for mobile phones and computers, with China as the main driver.