Gartner Says Worldwide Semiconductor Industry is On Pace for Double-Digit Growth in 2003
Analysts Examine Market Conditions and Driving Factors for the Semiconductor Industry during Gartner Tech Investor Summit in New York City
NEW YORK, N.Y., November 12, 2003 — The worldwide semiconductor industry is closing in on a double-digit increase in revenue for 2003, with market revenue in 2004 projected to approach levels not achieved since 2000, according to preliminary results by Gartner, Inc.
Gartner analysts presented these findings during the Gartner Tech Investor Summit, a 3-day event that concludes here today.
The worldwide semiconductor market is forecast to reach $174 billion in 2003, an 11.7 percent increase over 2002. In 2002, worldwide semiconductor revenue totaled $156 billion.
In 2004, the semiconductor market is expected to reach nearly $210 billion, an increase of more than 20 percent over 2003. The highest level for market demand in the semiconductor industry was $222 billion in 2000.
"The surge in semiconductor sales over the past two quarters has been mainly a supply-driven story," said Jeremey Donovan, research vice president for Gartner's semiconductor research group. "Capacity utilization is marching upward and the quarterly Dataquest Semiconductor Inventory Index (DASI) reveals that semiconductor inventory in the supply chain is near ideal levels. Moreover, on the demand side, there have been encouraging signs of third quarter economic growth that should gradually trickle into improvements in IT spending."
Gartner analysts said that in front-end semiconductor manufacturing, silicon demand is increasing, overall wafer fab utilization now exceeds 80 percent and leading-edge foundry wafer pricing has firmed. In packaging and assembly, overall utilization rates continue to increase on a monthly basis and leading-edge capacity has tightened as demand grows for advanced packaging solutions.
Gartner Tech Investor Summit is taking place at the Grand Hyatt at Grand Central in New York City. The summit is designed to meet the needs of investors ready to move forward with confidence and clarity, as well as investment banks and other major organizations in the investment world looking to re-engage with their most important customers.
The summit format and agenda features independent research panels and presentations by more than 70 major and emerging technology companies. A keynote address was delivered Tuesday by Leon Panetta, former White House Chief of Staff and current Co-Chair of the NYSE Corporate Accountability and Listing Standards Committee.
Gartner Tech Investor Summit is an invitation-only event designed for North America?s leading institutional investors. For more information, go to www.techinvestorsummit.com or call Ann Marie Dutra at 603-471-4229 or e-mail annmarie.dutra@gartner.com.
A more detailed breakout of the semiconductor forecast is also available to clients of Gartner Dataquest's Semiconductor Forecast Worldwide program. This program provides a comprehensive forecast database, which contains a detailed breakdown of the semiconductor forecast by application and by device. This industry leading electronically delivered publication refreshes semiconductor forecast data for more than 80 applications and 30 device types each quarter. To subscribe to this service, please contact Pia Rieppo at 408-468-8710 or at pia.rieppo@gartner.com. More information on Gartner's semiconductor research can be found in the Gartner Semiconductor Focus Area.
About Gartner:
Gartner, Inc. is the leading provider of
research and analysis on the global information technology industry. Gartner serves more
than 10,000 clients, including chief information officers and other senior IT executives
in corporations and government agencies, as well as technology companies and the
investment community. The Company focuses on delivering objective, in-depth analysis
and actionable advice to enable clients to make more informed business and technology
decisions. The Company's businesses consist of Gartner Intelligence, research and
events for IT professionals; Gartner Executive Programs, membership programs and peer
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emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in
Stamford, Connecticut, and has 3,700 associates, including more than 1,000 research
analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
