Chip revenue forecast reduced for next two years

The Semiconductor Industry Association (SIA) revised its predictions of growth in revenue from semiconductors for 2003 on Wednesday, slashing their prediction by nine percent without providing details in a press release.

Last November, the SIA predicted revenue from chip sales would grow 19.8 percent in 2003, but the group cut its estimate of 2003 revenue to US$154.9 billion, reflecting growth of 10.1 percent over 2002 revenue. In 2004, the organization now predicts semiconductor revenue will grow 16.8 percent to US$180.9 billion in 2004, down from predictions of 22 percent growth to revenue of US$206 billion made in November.

Revenue from memory chips will drive growth over the next few years, the SIA said. The group predicted DRAM (dynamic RAM) revenue will grow 43 percent, while flash memory for cell phones, smart phones, and personal digital assistants will grow 25 percent in 2004. The forecast for next year also assumes growth in IT spending is just around the corner.

Major semiconductor companies have been cautious about their outlook for the rest of the year. Intel Corp. narrowed its guidance for its second-quarter revenue last week to stay within its previously predicted range, slightly above seasonal trends. But Texas Instruments Inc. issued a revenue warning on Tuesday that second-quarter revenue growth would be lower than expected due to, among other things, the effect of severe acute respiratory syndrome (SARS) on sales of wireless chips in Asia.

Despite the concerns about SARS, the SIA believes semiconductor revenue will grow 12.1 percent to US$57.3 billion in 2003 in the Asia Pacific market, which excludes Japan. Semiconductor revenue in the Americas is expected to decline 2.1 percent to US$30.6 billion in 2003, as more and more PC and cell phone manufacturing is moved to Taiwan, Malaysia, or China from the Americas, the SIA said.

European revenue growth is expected to hit 11.8 percent in 2003, up to US$31.1 billion. The strongest growth in 2003 is forecast to occur in Japan, where revenue should soar 17.5 percent to US$35.8 billion, the SIA said.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Tom Krazit

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?