Semiconductors will grow 18% in 2004

The worldwide semiconductor market will grow 18% in 2004 on strong growth in sales of mobile phones and PCs, according to research firm IDC. Semiconductor revenue in 2003 reached $160 bil, and after a very strong 2004 will settle down to a 12% compound annual growth rate until 2008, when the market will be worth $282 bil, the researcher says.

Strong demand for PCs and mobile phones in the second half of 2003 has helped to stabilize average selling prices for semiconductors, according to IDC. Mobile phone shipments in 2003 reached 530 mil units worldwide while PC shipments reached 152 mil units, and unit shipments of both will grow more than 10% this year, IDC says.