IRVINE, Calif., Jan.13, 2000 (PRIMEZONE) -- Ibchannel.com (www.ibchannel.com/ibcplus) reported today that Industry experts are forecasting a banner year for semiconductor companies such as Applied Materials (Nasdaq:AMAT) and Sitek (OTCBB:SITK) that make the equipment and materials which in turn make the chips or electronic brains used in everything from desktop PCs to portable wireless telephones.
The experts offered their forecasts at the annual Industry Strategy Symposium, which is sponsored by the Semiconductor Equipment and Materials Inc. (SEMI). Growth in the industry could run up to 40 percent in 2000 with several years of back-to-back growth on the horizon.
Dan Rose, president of research firm Rose Associates, said that the upturn was so strong it was producing shortages of materials needed to make key components used in computing systems. He also said the companies that make silicon wafers, the foundation of most electronic devices, were starting to increase their prices because of the rising demand.
G. Dan Hutcheson, president of VLSI Research Inc. in Silicon Valley, told the 350-plus attendees that he was forecasting very good back-to-back years for 2000 and 2001 as the equipment industry ramps up to meet the demand for processors used in a wide range of computers and electronic devices.
He said the explosion could push growth in the industry by as much as 40 percent in 2000, depending on a number of factors. He said he could easily see growth in orders running 27 percent in 2000, and a similar percentage in 2001.
Other analysts echoed his positive outlook. Klaus-Dieter Rinnen, principal analyst at research firm Gartner Group/Dataquest was also forecasting strong growth. He suggested that the total market for equipment and materials could jump to $38 billion in 2002 from $17 billion in 2000, a 30 percent compounded growth rate over three years. He attributed the rapid growth in revenue to the turnaround in the world economy, as well as the great demand for chips used in all kinds of computers and consumer electronic equipment.
Based in Mountain View, Calif., SEMI is an international trade association serving more than 2,300 companies participating in the $65 billion semiconductor and flat panel display equipment and materials markets. For more information, visit SEMI on the Internet at www.semi.org. For additional alerts subscribe to IBC Plus by visiting www.ibchannel.com/ibcplus.