WSTS Semiconductor Market Forecast Spring 2005

Release Date: 31. May 2005 - 02:00 UTC

World Release Date: 31 May 2005 - 6:00 UTC Singapore, Spring Forecast Meeting 17 – 20 May 2005

From The WSTS Board of Directors:

According to the World Semiconductor Trade Statistics (WSTS), the world semiconductor market is expected to reach $B227 in 2005, an increase of 6.3% over 2004. This is very close to the forecast issued a year ago, while the forecast made in autumn 2004 drew a less optimistic scenario of 1.2% growth for 2005. Within the environment of a generally recovering world economy and growing demand in major application end-markets, semiconductor industry growth in the first quarter of 2005 was stronger than projected, despite of first signs of deceleration observed in the second half of 2004.

While the current forecast maintains the “soft landing” scenario, the industry anticipates positive growth throughout the forecasting period with mid single-digit growth rates in 2005 and 2006 and thereafter to resume double digit growth. While the forecasted semiconductor market cycle is considerably smoother than previous cycles, the different regions and products maintain their historical patterns. That is, the memory product cycle is more pronounced than the other products and Asia Pacific continues to be the fastest growing region, due not only to a continuing shift in equipment production but also to rising internal demand in those countries. The growth of equipment production in Mainland China is expected to sustain faster than average growth in Asia throughout the entire forecasting period.

For further information, please consult:

(click on name for email address)

In the AmericasJeff ElliottAmericas Vice Chairman+1(408)433 8253
In EuropePatrice VaslotEurope Vice Chairman+33(1)5807 7763
In JapanToshio IchiyamaJapan Vice Chairman+81(3)5201 5046
In Asia PacificTony HuangAsia Pacific Vice Chairman+886(2)81777168x1368
For the WorldMike LeeWorld Chairman+82(31)208 3513

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