Chemicals and materials sector set for 'dramatic' fall in growth
The semiconductor chemicals and materials market will experience a “dramatic” fall in growth in 2005, according to market analyst The Information Network.
Following an estimated near record-breaking 22.2 per cent expansion in 2004 (from $10.6 billion to $13.0 billion), the sector will only grow by around 7.7 per cent (to $14 billion) in 2005, claims the companys president, Dr Robert Castellano.
“We are seeing the end of the three-year upturn in the semiconductor market and growth rates are projected to be nearly flat in 2005,” he said.
Even the most buoyant areas of the sector in 2004 will see growth slump in 2005, according to The Information Network. The silicon wafer sector, which is expected to have expanded by 25.1 per cent in 2004, will only grow by 8.8 per cent in 2005, claims Castellano.
Although there will undoubtedly be a slow down in growth in the chemicals and materials sector in 2005, we at European Semiconductor dont believe that it will be as severe as The Information Network predicts.
We believe that accelerating growth in the personal computer market will prevent a major slump in growth. “This should ensure the slow down is a slow one,” said European Semiconductor editor in chief David Ridsdale.
