Semiconductor revenues to decline 5.7% in 2005

In-Stat expects 2005 to be a down year for semiconductor industry with revenue declining by 5.7% to $199.3 bln. This downturn comes on the heels of 2004 annual revenue growth of 27.0%, and annual revenue of $211.4 bln, a new record. This downturn will be far less severe, because it is taking place within a relatively strong worldwide economy, an ecomony which is expected to grow by 4.3% in 2005. Growth is expected to resume in 2006 and continue through 2008, before the industry suffers another mild downturn in 2009. New, mostly consumer-oriented products are diverse, and no single new product is expected to drive the industry to the extent that PCs and mobile phones have in the past. Greater diversity in markets will tend to make industry revenues more stable.