Shipments of semiconductor and electronics equipment declined in the first quarter from the fourth quarter of 2004. However, the declines were seasonal and sales will rise in each of the remaining three quarters, according to market researcher iSuppli.

Electronic equipment factory revenue decreased 5.1% to $275.5 billion from $290.5 billion in the fourth quarter of 2003. Revenue rose 2% in the second quarter to reach $281 billion, another 6% in the third to hit $297.7 billion and 6.2% in the fourth to reach $316 billion.

Worldwide semiconductor revenue declined by 4.4% to $49.8 billion in the first quarter. Chip revenue will increase 4.5% in the second quarter to reach $52 billion and then rise another 8.7% in the third quarter and 5.2% in the fourth.

The growth in equipment revenue will be broad based. Double-digit growth in shipments of PCs and mobile handsets will be the electronics industry's main driver in 2004. However, a recovery in the long-suffering wired communications segment, plus stronger conditions in the consumer and industrial markets also will contribute to the upswing.

The rebound in the wired communications equipment segment is significant because the market had been contracting almost continuously for about three years, restraining overall growth in electronic equipment sales. Wired communications equipment rose slightly on a sequential basis in the fourth quarter of 2003, marking a turning point after the long period of decline.

iSuppli predicts shipments of wired communications equipment will grow to reach $108.7 billion in 2004, up 3.4% from $105.1 billion in 2003