Cahners InStat Predicts Slow Year for Semiconductors

May 17, 2001 Market researcher Cahners InStat (www.instat.com) is predicting that the market for semiconductors will be down 15.8% this year (2001). The "Semiconductor Product Market Forecast" offers a five-year perspective on this market, which is often viewed as a bellwether to the telecommunications and other electronics-related markets.

The report says that revenues increased by 36.8% in 2000, to a record $204.4 billion, but that such growth is not sustainable over the long term. A downturn can be expected in the first half of this year, followed by a strengthening market in the last two quarters. The market researcher forecasts both unit and revenue growth in 2002, and a return to normal growth patterns by 2003.