San Jose, California--Nov. 2, 2000--The worldwide semiconductor industry is on target this year to exceed the $200 billion mark for the first time, and could reach $319 billion by 2003, reported the Semiconductor Industry Association (SIA) in its annual forecast on Nov. 1. The chip industry is also on track to grow at a rate of 21.8% in 2001, SIA projected, with sales reaching a total of $249 billion.

"Responding to the challenges associated with the redefining and revitalization of the global communications system will propel the semiconductor industry toward the $1 trillion goal in the next decade," said Wilfred J. Corrigan, LSI Logic chairman and chief executive officer, as he delivered the annual forecast address at SIA's 24th Annual Forecast and Award Dinner. "The PC is still a major growth driver, but for much of the industry there are faster growth opportunities associated with the new information-based economy."

Semiconductor product categories that will directly benefit from the new wired and wireless applications, according to SIA, include: flash memory, standard cell ASICs, digital signal processors, programmable logic devices, analog, and optoelectronics.

"Not only are semiconductors ubiquitous and indispensable to our everyday lives, they are being used in an even greater variety of communications, Internet infrastructure, and handheld applications," said SIA President George Scalise. "While traditionally there have been two dominant markets around the world, in this forecast, we see a broadening of product demand coming from all geographic regions."

While the Americas remain the world's largest semiconductor market, SIA reported that Asia Pacific is the fastest growing market--at 46.6%. Ten years ago, the U.S. and Japan, the two largest markets, made up approximately two-thirds of the global semiconductor market. Now, the two largest markets, the Americas and Asia-Pacific, comprise less than 60% of the worldwide chip market--demonstrating the growing global demand of silicon solutions.