iSuppli predicts 4.7 percent chip growth in 2005
Dec 07, 2004
iSuppli Corp. has reduced its forecast for worldwide semiconductor revenue growth in 2005 due to a slowing of electronic equipment production, combined with a continued overage in chip inventories.
Worldwide semiconductor sales are expected to rise to $237.1 billion in 2005, up 4.7 percent from $226.6 billion in 2004, according to iSuppli's newly-revised forecast.
iSuppli previously had predicted 9.6 percent growth in semiconductor revenue in 2005.
Electronic equipment production, which drives semiconductor sales, is expected to increase by 6.2 percent in 2005, down from 10.1 percent in 2004.
The semiconductor industry in early 2005 will continue to contend with the excess inventories that flared up in the third quarter of 2004. This will depress semiconductor Average Selling Prices (ASPs) and restrain growth in 2005.