The global semiconductor market will grow by 8.9% to $167bn (£105bn) this year, driven by an expected increase in corporate IT spending during the second half of the year, according to estimates by Dataquest.
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By the end of 2002, global demand for chips slowed down and remained weak, said Dataquest. However, it expected an upturn in business spending in IT, especially for PCs, during the second half of 2003, and predicted that a strong demand for mobile handsets would also lift the market.
Ongoing questions about the connection between PC upgrades and improved employee productivity means that gauging the strength of an increase in corporate spending will be difficult before the third quarter, Dataquest warned.
Dataquest also predicted that lower investment in semiconductor manufacturing facilities would limit the addition of manufacturing capacity, resulting in higher shipments and continued revenue growth in 2004 and 2005.