Asian Semiconductor Sector To Expand 14%, Gartner Says

By Agence France-Presse Asia's semiconductor market is projected to generate US$67 billion worth of sales in 2003, an increase of 14% from a year ago, according to Stamford, Conn.-based Gartner Inc. For 2004, the market will be worth $86 billion, says Gartner's principal analyst for the region, Philip Koh. The projected rise in sales in the region will be driven by buoyant demand in China, South Korea and Taiwan, the three biggest semiconductor markets in Asia. "The demand of semiconductor consumption, particularly in [the] three major countries, are really driving up the whole industry," Koh said. "And of course China will still continue to lead . . . five years down the road." Globally, the semiconductor market is expected to generate revenues of $173 billion in 2003, up 11% from $156 billion in the previous year, Gartner's vice president Richard Gordon said. Despite the projected improvement, Gordon said there was still "healthy skepticism" due to prevailing global economic uncertainties. "There is turmoil in the world these days and businesses are being cautious about spending on things like computer technology," Gordon said. "So we have to be a little bit cautious about the end market here." Copyright Agence France-Presse, 2003