Chip market looking more robust in '99

Chip market looking more robust in ’99
Tom Foremski
There is good news ahead for the global chip market says US market research firm Dataquest, but the industry must first struggle through 1998 before seeing stronger growth in 1999.
Dataquest predicts that 1998 chip growth will be about 8 per cent this year to become a $159bn market, compared with 3.5 per cent growth in 1997 and a market valued at $147bn. Growth this year is hampered by falling prices for DRAMs.
“The Asian financial crisis, low DRAM pricing and DRAM over capacity, and the general over capacity and pricing pressures that exist in other product segments will hamper semiconductor revenue growth this year, although some product segments will achieve robust double digit growth rates,” said senior Dataquest analyst Joe Grenier.
Robust growth of 18 per cent is forecast for 1999, but the DRAM oversupply situation is likely to persist throughout 1999 with a DRAM shortage forecast for 2000.

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