VLSI Research: Chip sales could rise by 33% in 2004

Global revenue from semiconductor sales could rise by 33% to $189.6 bil in 2004, driven by a 20% increase in output, a research group said on Monday.

Global revenue from semiconductor sales could rise by 33% to $189.6 bil in 2004, driven by a 20% increase in output, a research group said on Monday. Makers of chip manufacturing equipment stand to benefit as chip producers would need to invest in new production capacity, it said.

"The chip making industry finished 2003 with an 18.4% increase in sales over 2002," VLSI Research said in a note. "Conditions are ripe for the upturn. For chip makers, three years of withholding on IT upgrades will result in a boom similar to the 1999-2000 'year 2000' phenomenon."