Chip market to grow 29% in 2004 as tags stabilize
Staff -- Purchasing, 6/17/2004 2:00:00 AM
The worldwide semiconductor market will grow 29% to $214 billion in 2004, according to market researcher In-Stat/MDR.
While growth will be strong, "we do not expect a replay of 2001 anytime soon, the strength of the current recovery should not be interpreted as a return to the good old days," says Mark Kirstein, In-Stat/MDR's general manager.
"Fundamental changes are taking place in both the demand and supply aspects of the semiconductor market that will cause the next decade to be significantly different from the last," he says. For one thing there is no one "killer app" on the horizon to drive future market growth as PCs and mobile phones did in the 1990s.
Kirstein also says a wider variety of lower volume products have emerged that are subject to standardization and extreme competition which tends to suppress prices. He adds the growth of the foundry industry, particularly in China, is expected to keep competition high and wafer prices low in the long term.
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