WSTS raises 2006 chip outlook to 10 pct growth

The global semiconductor market is likely to grow 10.1 percent this year, World Semiconductor Trade Statistics (WSTS) said on Tuesday, raising its earlier forecast of 8.0 percent growth due to brisk memory chip demand.

WSTS, which has member companies accounting for 85 percent of the world's chip makers, projected the chip market would expand to a record $250.46 billion in 2006, with the Americas showing the fastest expansion. It added that this would be followed by even stronger growth in the following years.

Toshio Ichiyama, chairman of WSTS's Japanese unit, told a news conference that strong demand for memory chips, including DRAM (dynamic random access memory) chips and flash memory, is leading the global semiconductor market's growth.

"Sales of personal computers showed a stronger-than-expected result last year," he said. "With that and results from the first quarter, we believe the momentum in the personal computer market is exceeding our expectations."

"On top of that, both DRAM and flash memory are used in mobile phones and digital consumer electronics, and these are solidly driving the market," he added.