The Channel logo

News

By | Tony Smith 5th November 2004 11:03

Intel's Barrett looks for chip sales growth in '05

So does market watcher iSuppli

Intel CEO Craig Barrett believes the current inventory correction being experienced by the chip industry does not herald a slowdown and has said he takes forecasts of flat sale growth through 2005 "with a grain of salt".

Speaking at a Semiconductor Industry Association (SIA) meeting this week, Barrett said: "I don't think the inventory correction is a euphemism for a slowdown."

Chip demand prediction remains an inexact science, he said. "We don't make forecasts," he added. "I take the SIA forecast with a grain of salt."

Earlier this week, the SIA lowered it 2004 global chip sales forecast to $213.8bn from $214bn. It also said it expects 2005's total to be much the same as that, with sales rising again in 2006, by 6.3 per cent. It had previously predicted a 4.2 per cent increase in 2005, followed by a 0.8 per cent dip the year after.

Barrett's expectations seem mirrored by market watcher iSuppli, which has reiterated its bullish September forecast for growth of 9.6 per cent during 2005.

In an EE Times interview, Dale Ford, iSuppli's VP of market intelligence services, said the growth will arise in part because a broader array of memory products will allow vendors to continue to pump out chips without having to flood a particular market.

"In the past, memory suppliers would keep the lines running, now they can reallocate production capacity," he said.

iSuppli believes chip sales will hit $208.8bn this year, up 25.5 per cent on 2003's total, $166.4bn, and well below the SIA's forecast. ®

Related stories

Chip trade body revises 2004 sales downward
September chip sales edge up 1%
Chip biz slowdown to stretch through Q1 '05
World chip sales flat in August
Slowing H2 chip sales to hit 2005's growth - report
Global chip sales slow on inventory build-up

alert Send corrections

Opinion

Neil McAllister

Claims that cloud will drive Oracle's future growth ring hollow
Pure Storage array

Neil McAllister

How the cloud taught Redmond to play by a new set of rules

Features

Pebble Steel
Meet the man who accidentally created the smartwatch hype
No, silly... he was the fall guy for years of Finnish folly
Fraud image