Weak phone, consumer markets slash chip sales hopes
UK and Ireland will see £6.8bn
British research group the Federation of the Electronics Industry (FEI) has halved its prediction for chip sales growth this year.
The FEI now reckons the UK and Ireland in 2001 will see six per cent growth, down from the 14 per cent forecast in its Semiconductor Annual Review. Malcolm House, economist and statistician at the FEI, told The Electronic Times that sales were expected to reach £6.8 billion, compared to the previous forecast of £7.3 billion.
The group has also cut its predictions for 2002 - it now expects sales growth of eight per cent for the year, compared with the previous 11 per cent prediction. Sales are forecast at £7.3 billion. For 2003, chip sales are expected to rise eight per cent to £7.9 billion.
The reduced figures are due to companies cutting back operations in their consumer businesses in the UK, and also to demand for mobile phones slowing.
"This year everyone has pulled back a long way," said House. ®
Electronics Times article