Worldwide semiconductor sales will fall 1.8% for 1998 to $134.6bn, according to information gathered by the Semiconductor Industry Association. The dour outlook for the year is being attributed largely to poor first-quarter sales which the SIA blames on the ongoing economic troubles in Asia and the continued oversupply of DRAMs. Sales are expected to pick up somewhat during the second half of the year, the SIA predicts. It also projects that sales will exceed the industry’s historical growth rate of 17% in the next three years. The SIA is looking for sales to grow 17.2% in 1999 to $157.7bn; 18.5% in 2000 to $187.0bn; and 18.9% to $222.3bn for 2001. Growth in internet commerce is expected to underpin the rising sales in what the SIA describes as the next growth cycle for semiconductors and consumer electronics.
