Semiconductor revenues to grow 27% this year

Chip vendors should take in $226 bln in revenue this year, an increase of 27% compared to 2003, according to Gartner. But revenue growth will slow considerably next year to 5-10%, and could possibly contract in 2006. Gartner feels that 2004 has been a very strong year for chipmakers, but the industry can’t sustain a 27% growth rate as the PC replacement cycle wanes in 2005.