Semi market on track for double digit growth

Leading European electronics analyst Future Horizons is holding firm to its double digit growth prediction for the global semiconductor market in 2005.

Leading European electronics analyst Future Horizons is holding firm to its double digit growth prediction for the global semiconductor market in 2005.

Growth in Q1 2005 was seasonally weak but in line with expectations, according to Future Horizons.

Integrated circuit shipments were up 1.1% in value with total semiconductors up 0.4% in value.

Future Horizons will hold its mid-term semiconductor industry briefing in London on 26th July 2005, and will include a mid-year analysis and forecast and longer-term predictions for the worldwide semiconductor market.

Future Horizons believes that the semiconductor market is on track for 15% growth over the year, and that Q2 will see mild growth followed by a strong second half rebound.

"A glass half empty mentality continues to dog confidence in the semiconductor market".

"But the current momentum is simply too strong for anything other than growth, barring any unforeseen serious market disruption", said Malcolm Penn, CEO, Future Horizons.

"The pessimists are being forced to reach for their erasers and revise their original overly negative forecasts up".

The industry's basic fundamentals remain robust according to Future Horizons.

World GDP growth remains resilient; capital expenditure is not overheating; underlying unit demand is strong; inventory will be purged sooner rather than later; and average selling prices continue to rise.

The Future Horizons mid-term semiconductor industry briefing will take place on 26th July 2005 at Kensington Close Hotel.

Places at the event are priced at GBP 495, and can be booked via the Future Horizons website.

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