Fueled largely by a surge in demand for mobile phones and PCs, the worldwide semiconductor market will rise 18 percent in 2004, International Data Corporation (IDC) has said.
IDC cited China as a key market that will drive the semiconductor industry in future years.
'From 2003 to 2008, the semiconductor market will grow at a compound annual growth rate of 12.5 percent, rising from $160 billion in revenue this year to US$282 billion in 2008.' the IDC report said.
Noting that China is the biggest consumer of mobile phones and the second biggest PC consumer, IDC said low-cost producing Chinese semiconductor companies will lead the way with 'disruptive innovation' in propelling the market in future years.
Chinese firms will 'play a key role in shaking up the competitive ranks among original equipment manufacturers (OEMs), original design manufacturers (ODMs), and semiconductor suppliers over the next five years,' the market research firm said.
Mainland Chinese semiconductor demand accounts for over one quarter of the US$60 billion Asia/Pacific market and that percentage is expected to jump to nearly one half in 2008, said Mario Morales, vice president of IDC's semiconductor research.
IDC said it expected double digit growth in PC and mobile phone shipments to continue in 2004, following 11 percent growth in 2003.
Mobile phone and PC shipments exceeded 530 million units and 152 units, respectively, in 2003, IDC added. In 2004, the market researcher expects semiconductor sales to be pulled by growth in 2.5G mobile phone, WLAN, and broadband and cellular infrastructure technologies.
Also reporting a strong recovery in the semiconductor market was the Semiconductor Industry Association, which has observed that industry revenue grew 16.4 percent this year though October. The SIA also noted strong growth in China markets.
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