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8% semi growth forecasted


Friday, October 28, 2005 After achieving 6.6 percent growth in 2005, the worldwide chip market is set to grow 8 percent in 2006 and 10.6 percent in 2007, according to the latest prediction from World Semiconductor Trade Statistics (WSTS).

The WSTS projection for 2005 is marginally higher than the 6.3 percent given in its Spring forecast, according to European Semiconductor Industry Association, which distributed the WSTS numbers. If the forecast is accurate the 2005 market for semiconductors will be $227.1 billion in 2005, followed by values of $245 billion and $271 billion in 2006 and 2007, respectively.

The current forecast maintains a “soft landing” scenario as the industry anticipates positive growth throughout the forecasting period with high single-digit growth in 2006 followed by double-digit growth in 2007. The WSTS foresees a continuation of the growing demand for electronic products such as PCs, digital consumer and mobile communications against the backdrop of a challenging but generally healthy world economy.

Asia Pacific continues to be seen as the fastest growing region, not only because of a continuing shift in manufacturing but also due to rising domestic demand in this region. The Asia Pacific market, already worth nearly half the global total, is set to achieve annual growth rates of 16.2 percent, 11.7 percent and 12.4 percent in 2005, 2006 and 2007.

In contrast the America’s region will see a slow climb with growth rates of 2.2 percent, 4.4 percent and 8.8 percent in the same respective three years. Japan is set to see its chip sales fall by 2.8 percent in 2005 followed by growth of 5.3 percent and 8.4 percent in 2006 and 2007.

By: DocMemory
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