Market research
Front-end capacity utilisation is put at greater than 90% for the whole year (Q1-Q4 = 93.7%, 98.9%, 93.3%, 95.6%). The market researcher believes that IC industry annual sales will be $182.2bn, a 30% increase on 2003.
The second half "mild pause" is attributed to supply chain inventory digestion and slowing demand due to increased energy prices. "VLSI does not see this turning into a full-blown crash because inventories are not in excess like they were in 2000 and there are no economic factors compounding gas prices."
The semiconductor equipment industry is expected to grow 60-70% in sales this year. This is a correction on VLSI's 40% forecast made in December 2003. The raised estimate factors in the second half slow-down.
Frost & Sullivan puts the high brightness light emitting diode (LED) market at $5.4bn in 2007, up from $2.6bn in 2003. The organic LED sector is expected to increase from 2003's $200mn to $2.4bn in 2007. Product reliability issues for high brightness devices are thermal management and electrostatic discharge. OLED production is hampered by high manufacturing costs.
