Weak Computer Sales Slow Chip Industry Growth

The global chip market won’t grow as fast as expected this year because users haven’t bought as many PCs and Macs as anticipated, the industry group, World Semiconductor Trade Statistics (WSTS), said Tuesday.

Global chip sales will likely grow only 8.5 percent this year to US$247 billion, slower than the 10.1 percent growth WSTS had forecast earlier this year.

In 2007, the global chip market will grow at an 8.6 percent clip, WSTS said, and in 2008, the pace will increase to 12.1 percent, led by growth in the Asia-Pacific region.

The Asian chip market was previously fueled by the shift of manufacturing to the region, but now domestic demand has taken the lead in the region, WSTS said.

The trade group also said consumer electronics and mobile communications will continue to lead other segments of the IT industry in increasing semiconductor content per unit.

-Dan Nystedt, IDG News Service (Taipei Bureau)

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• TSMC Q3 Profit Hit by Chip Glut

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• NEC to Ship HD DVD, Blu-ray Dual Format Chip

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