Semiconductor industry enters era of lower longer-term growth

November 2005
Electronics Weekly;11/23/2005, Issue 2219, p16
Trade Publication
The article focuses on the growth of the semiconductor industry. As 2005 draws to a close, it appears the year will have been one of modest growth in the chip industry, despite any negative economic impact from the jump in the price of oil and natural disasters, says market researcher Gartner. Worldwide semiconductor revenues are forecast to reach $235 billion in 2005, a 6.9 per cent increase from 2004. Semiconductor vendors remain conservative in their investment plans, which is enabling a continued gradual decline in supply-chain inventory levels and incremental improvement in manufacturing capacity utilization rates. Despite significant growth in digital audio players and, by extension, NAND flash memory in the short term, there is still a void in semiconductor demand looking to be filled as the PC and mobile handset markets enter maturity


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