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Europe semicon sales fall

Biggest drop ever

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European semiconductor revenues will be $29 billion this year, a 33 per cent drop from 2000.

Worldwide, revenues for the sector are set to fall 35 per cent, according to new numbers out from Gartner Dataquest. The research company says 2001 will mark the largest semiconductor revenue downturn ever recorded.

On the plus side, it expects 2002 will be the start of the recovery, picking Europe up to $30 billion in revenue, as well as building up steam to achieve a 31 per cent growth rate by 2003.

Gartner reckons three factors will allow this to happen: Intellectual property; China's entry into the WTO; and emerging technologies like digital video, wireless, digital modems, cars and smart card applications.

It says intellectual property (IP) will enable semiconductors to reach the demands placed by Moore's law and OEMs. The burgeoning IP market grew 40 per cent in 2000 and is expected to show a compound growth rate of 38 per cent until 2005.

Knocking down the wall to China will create a major new market to drive growth and various emerging technologies are creating additional vehicles to stimulate demand in the sector. ®

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