Gartner is now predicting that worldwide semiconductor revenue will be $235 billion in 2005, a 6.9 percent increase from 2004 and that the market will grow 7.6 percent in 2006 and 5.1 percent in 2007, the report said, referencing a quarterly update provided by Gartner. This contrasts with Gartner¡¦s prediction that the market would grow 3.6 percent in 2005 and grow only 2.1 percent in 2006, given in March 2005.

The market research firm said the chip market is falling back to a more modest growth pattern for the next few years, the report said.

The company argued that despite growth in digital audio players and the use of NAND Flash memory there is a "void" in semiconductor demand which cannot be filled by the PC and the mobile phone, which are reaching maturity.

¡§This outlook shows that the industry is entering a new era of lower long-term growth and this market maturity is bringing with it more-sensible investment decision-making by semiconductor vendors,¡¨ the report quoted Richard Gordon, managing vice president for Gartner's semiconductor research group, as saying.

By: DocMemory
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