NCPA - National Center for Policy Analysis

Semiconductor Sales Ready To Rock

October 9, 2000

Worldwide semiconductor sales will grow at double-digit rates over the next three years as manufacturers find new uses for them beyond the personal computer, concludes a new report from Dataquest, a unit of the Gartner Group.

  • Electronics manufacturers are putting semiconductors in cellular phones, game consoles, cameras, set-top boxes, handheld electronic organizers and other devices, the report says.
  • There have been continuing shortages of high-end processors and memory chips.
  • Worldwide, revenue from semiconductor says are expected to jump 37 percent this year over 1999 -- to $231.6 billion.

Prices for semiconductors will remain high through 2001, say analysts, when new factors will be coming on line.

Source: Associated Press, "Study: Semiconductor Sales Set to Skyrocket," USA Today, October 9, 2000.


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