Chip market slows down

Chip market slows down
Tom Foremski
The global chip market will not grow as much as expected this year, says a report from US market research firm International Data Corporation, (IDC) which predicts sluggish growth of 8.4 percent this year to $147.8bn.
IDC blames falling DRAM prices and sagging Asian economies for the slower growth. It predicts that next year will be much better, with improvements in DRAM prices leading to double digit growth and a $272.2bn market by 2002.
The Americas regions will show the strongest growth, and it would be even stronger if not for the economic crisis in Asia which has sent “waves of uncertainty across every region,” said senior IDC analyst Mario Morales. “Japan is of most concern because of current economic and political instability.” He predicted 1998 chip market revenue growth to be the weakest in Japan with a 4.8 per cent increase.
The microprocessor market is the healthiest chip industry segment, with strong growth of almost 25 per cent in 1998 to $29.3bn.


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