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| GartnerGroup's Dataquest Says Semiconductor Industry to Experience Double-Digit Growth for First Time Since 1995 | |||
| Upcoming Semiconductor Conference to Announce Megatrends for the Industry | |||
| San Jose, Calif., October 14, 1999-Despite the recent earthquake in Taiwan, the worldwide semiconductor market is still on pace to surpass $155 billion in 1999, an increase of 14.1 percent over 1998 revenue, according to the quarterly update report on the industry by Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT). 1999 will mark the first year of semiconductor growth since 1997 and the first year of double-digit growth in four years. This double-digit growth cycle is expected to last through 2002, as strong demand is coupled with overcapacity disappearing. | |||
| "Key drivers of the semiconductor market will continue to be communications equipment, consumer electronics, and PCs-which in aggregate, account for about two-thirds of total revenue-joined by automotive electronics," said Dale Ford, director of Dataquest's worldwide semiconductor applications group. "The underlying megatrends driving high-growth semiconductor applications are the digital home, the global communications explosion, personal mobility, and e-commerce. All of these mean explosive bandwidth demand." | |||
| The worldwide semiconductor market is forecast to reach $250 billion by 2003. The DRAM market will continue to be the leading driver for the industry, as the worldwide DRAM industry is projected to grow from $21 billion in 1999 to $48 billion by 2003. The ASICs market is also expected to show healthy growth, with revenue reaching $17 billion in 1999 and totaling $34 billion in 2003. | |||
| "There should be rapid growth in ASICs and stable growth in major markets like analog and MPUs," said Ron Bohn, director of research for Dataquest's Worldwide Semiconductor program. "We expect a DRAM shortage starting during the first half of 2000, which will cause a DRAM revenue surge that peaks in 2002. DRAM oversupply should return by 2003, however, causing DRAM revenue to decline." | |||
| Semiconductor revenue in the Americas region will increase by 15 percent in 1999, with revenue reaching $52 billion. By 2003, the Americas region is projected to have revenue total $85 billion. With much of the Asian economic crisis receding, Asia/Pacific revenue should increase 17 percent in 1999, with revenue at $36 billion. Dataquest analysts expect Asia/Pacific to be the fastest-growing region in the world both near term and long term, with revenue forecast to increase to $61 billion in 2003. | |||
| Semiconductor revenue in the European region will increase 8 percent in 1999, with revenue at $32 billion, and the market will increase to $52 billion in 2003. Japan has experienced weakness for several years. The region will grow 15 percent in 1999 as measured in dollars with revenue reaching $35 billion although the yen growth rate is lower. The Japan region will continue to grow, with revenue also totaling $52 billion in 2003. | |||
| A detailed analysis of the semiconductor industry will be presented during the upcoming conference, "Dataquest Semiconductors '99: Megatrends for the Millennium," November 1-3 in Palm Springs, California. Dataquest analysts will discuss the trends that will drive the semiconductor industry over the next five years. More information on the conference, including a conference agenda, is available on Dataquest's Web site at http://www.dataquest.com/public/static/events/scon3/scon3.html. | |||
| This information is produced by Dataquest's Semiconductors Worldwide program. This program combines the global industry view of memory, microcomponent, logic/ASIC, analog, discrete, and optical device segments. Additional information on this program is available on Dataquest's Web site http://www.dataquest.com/public/static/home/ourservices/scopes/n01semiww.html. To subscribe to this program, please call 800-419-DATA, or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at www.dataquest.com. | |||
| GartnerGroup's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. | |||
| As the world's leading authority on IT, GartnerGroup provides clients with a wide range of products and services in the areas of IT advisory services, measurement, research, decision support, analysis, and consulting. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community serving Fortune 1000 clients from 80 locations worldwide. Additional information about the company is available on the Internet at www.gartner.com. | |||
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