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Chip outlook poor for 2005

By Derek Sooman

On November 2, 2004, 10:55 AM

"There were high hopes on digital electronics (as a demand driver) earlier this year. But in our latest forecast, we took a view that digital appliances will grow steadily, rather than steeply." - WSTS.

Looks like growth forecast for the semiconductor market isn't looking too healthy for next year. The World Semiconductor Trade Statistics predicted in June that the market would grow 8.5 per cent next year. This is already a slowdown from the estimated figure of 28.5 percent growth rate this year. But new figures from the WSTS slash this growth forecast to 1.2 percent in 2005.

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