High-tech specialized market research organization, INSTAT/MDR has forecasted world semiconductor market will grow rapidly this year and next year. The organization has reached a result from a survey among semiconductor market experts and the board of directors from product end users. This result shows that the organization was correct about the estimate it made this year by the 16.7% growth this year and expects 25.9% next year.

This year’s sales have increased 10.9% and market price has increased 5.3%. 16.7% increase in total sales sums up to 164.2 billion dollars. Growth rate and actual sales growth per month forecasted by INSTAT/MDR has hit the mark.

If growth rate continues to rise, sales are predicted to jump 25.9% to 206.8 billion dollars. Sales will not be limited to specific products but will increased widely throughout the entire product line. Personal computers and mobile phones are specially expected to lead this growing pace.

Operating rate of semiconductor facilities during the second quarter of 2003 recorded 85.9%, which has increased 33.8% from the lowest operating rate, 64.2% in third quarter of 2001. Additional investments for production equipment are currently deficient and most semiconductor industries are carefully planning marketing. If the current depression is perked up, facility operation may catch up to 90%.

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Source : KOTRA, November 6, 2003