Asia will lead global chip recovery
That's what Japan Council says
After its worst ever year of recession, the global semiconductor market is now on the road to recovery, largely thanks to Asia's voracious appetite for chips, the Japan Council of the World Semiconductor Trade Statistics (WSTS) said yesterday.
In its latest report on the state of the industry, the Japan Council said the global chip market lost 32% of its value last year, but will grow 2.3% this year to $142.2bn. However, the council's analysis of the industry contains mixed news for US, European and Japanese chip makers.
Growth in these markets is expected to be negative again this year, and it will be up to Asian markets, which the Japan Council expects to grow by 25.7%, to provide the overall impetus for growth.
For the more established chip markets, full recovery is not anticipated before the first quarter of 2003, when Japan Council predicts that world markets will also increase by 25.7% sequentially, and Japan too will rebound and record a 24.9% sequential climb in the first quarter.
The world semiconductor market is expected to grow 21.7% to $173.1bn in 2003, and will enjoy average annual growth between 2001 and 2005 of 10.1%. Japan's chip market should enjoy average annual growth of 5.7% in the same period, increasing 17.6% next year to JPY 4.4 trillion ($35.2bn).