Research Firm Tones Down Semiconductor Outlook

Market research firm iSuppli Corp. says slowing electronic-equipment production and continued excess chip inventories has prompted it to reduce its forecast for worldwide semiconductor revenue growth in 2005. The El Segundo, Calif.-based company's revised forecast predicts that semiconductor sales will rise 4.7% in 2005, to $237.1 billion, over the previous year. iSuppli previously had predicted 9.6% revenue growth in semiconductors in 2005. The market research firm says electronic equipment production is expected to increase by 6.2% in 2005, down from a 10.1% increase in 2004. Electronic equipment production drives semiconductor sales.