Electronics Industry Update
Staff -- Semiconductor International, 6/1/2003
| Worldwide Sales of Semiconductor Devices | Manufacturers’ Shipments of Electronic Components |
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| Manufacturers’ Shipments of Computers | Manufacturers’ Shipments of Communications Equipment |
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Semiconductor sales are expected to increase 11.8% this year and 24% more in 2004 after having remained stuck since last May at just over $12.0B a month, plus or minus the usual seasonal and end-of-quarter variation. ASPs rose 3-4% during the long stall, but this was offset by lower unit volume as each round of new designs incorporated more functions.
The expected revenue gain will be about equally higher prices and higher volumes. The volume gains will be driven by the return to expanding sales in the two largest end markets. Shipments from U.S. computer, peripheral and storage manufacturers turned up slightly in the first quarter and are forecast to increase 7.6% this year and 12.9% in 2004. Similarly, U.S. telecom equipment manufacturers will have a slight sales increase this quarter after 10 quarterly declines. Sales are expected to rise 3.3% in 2003 and 17.9% next year.
The expected price gains will initially be caused by reduced discounting as demand steadily improves. Then, within a year, the absorption of current spare fab capacity will begin to permit price increases for high-volume commodity circuits as well as custom parts competing for wafer starts at the most advanced production facilities.
