WSTS Semiconductor Market Forecast Autumn 2006

Release Date: 31. October 2006 - 06:00 UTC

Autumn Forecast Meeting 17 October to 20 October 2006, Redwood City, California, USA

WSTS Projects 8.5 percent global semiconductor growth in 2006

Worldwide Chip Market to Grow 8.6 percent in 2007, 12.1 percent in 2008

The global semiconductor market is expected to grow 8.5 percent on an annualized basis to $247 billion in 2006, according to the autumn forecast of the World Semiconductor Trade Statistics (WSTS). Projected growth in the worldwide semiconductor market will moderately increase to 8.6 percent in 2007 and culminate with 12.1 percent in 2008, with Asia-Pacific being the largest regional market.

The WSTS autumn 2006 projection is lower than the forecast released this spring, which estimated a 10.1 percent growth for the year. The variances to the spring forecast relate to a few, albeit significant products, whereas the majority of products remained close to the patterns predicted in the spring. The most notable decline was in microcomputers.

The WSTS foresees a continuously growing demand for electronic products such as PCs, digital consumer appliances and mobile communications, enhanced by the increase of semiconductor content per installed system. These trends are expected to unfold in a challenging, yet generally healthy world economy.

The current forecast anticipates a consistent, positive growth throughout the forecasting period, peaking in 2008. While the forecasted semiconductor market does not show a pronounced cyclical pattern, some product groups maintain cycles similar to historical patterns. The Asia Pacific region continues to be the fastest growing geographical area, now primarily due to rising domestic demand, whereas the manufacturing shift had been the primary contributor to its past growth rate.

For further information, please consult (click on the name for the email address):

In the AmericasJeff Elliott Americas Vice Chairman+1 (408) 433-8253
In EuropeUrs RohrerEurope Vice Chairman+49 (89) 234-23537
In JapanHirozumi MisakiJapan Vice Chairman+81 (75) 956-9502
In Asia PacificSung Kyu KimAsia Pacific Vice Chairman;+82(31) 209-4080
For the WorldToshio OgawaWorld Chairman+81 (3) 3457-3917

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