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October 29, 1997updated 01 Sep 2016 6:03pm


By CBR Staff Writer

The Semiconductor Industry Association describes an estimated $139.1bn sales of semiconductors in 1997, 5.5% up on 1996, as recovery, following last year’s slump in DRAM prices, predicting a 16.8% growth in 1998 to $162.6bn. The Association claims sales will reach $193.5bn in 1999 and $232.3bn in 2000. By comparison the market was worth $50.5bn in 1990. In 1997 microprocessor sales outgrew sales of DRAM memory, reaching $23.6bn, though DRAM sales are expected to outstrip CPU sales once again by 2000, reaching $41.7bn compared with $40.6bn for microprocessors. The US accounted for 44.% of microprocessor sales in 1997 – Europe second at 25%. DRAM sales, which reached $40.8bn in 1995, collapsed to $25.1bn due to price-cutting following a glut of parts. DRAM sales fell to $20.8bn in 1997. Asia Pacific became the third largest market for semiconductors representing 21.8% of all sales, or $30.3bn, ahead of Europe. It’s expected to eclipse the number two market, Japan, in 1999 and will represent 24.3% of all sales by 2000. Asia Pacific is the fastest growing market. The Americas market – just over one- third of the total market – grew 9.7% to $46.8bn in 1997 and is expected to reach $54.9bn in 1998, reaching $78.4bn in 2000. Japanese sales declined 1.9% to $33.5bn – a 24.1% share – which SIA blames partly on a weak yen. It’s expecting sales there to jump 12.2% to $37.6bn next year and reach $49.8bn in 2000. Europe grew 3.2% to $28.4bn, a 20.4% share of the market. Sales are expected to reach $47.5bn in 2000. The memory chip market fell 32.6% in 1996 and 15.5% this year to $30.4bn. An increase to $35.5bn is predicted next year, reaching $54.8bn in 2000. Sales of microprocessors and digital signal processors are expected to rise 20% a year from $48.2bn in 1997 to $83.5bn in 2000. Logic chip sales grew 7.2% to $21.5bn in 1997. Sales are predicted to reach $35.1bn in 2000. Analog product sales rose to $19.5bn in 1997, up from $17bn in 1996. Sales will reach $32.4bn in 2000.

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