Asian crisis dampens global chip market, Dataquest says

Financial troubles in Asia are slowing the growth of the worldwide semiconductor market, which is expected to grow 7% to $US160 billion by the end of 1998, according to the latest prediction from market researcher Dataquest Dataquest previously forecast that the market would grow to $175 billion, or by 17% during the year, but the firm reevaluated its figures because of the Asian crisis. Dataquest attributed most of the predicted slowed growth to a decline in worldwide electronic equipment production. The potential lower costs of DRAM manufacturing in Korea -- which would result in lower market prices -- and the devaluation of the won further lowered the semiconductor forecast.

Financial troubles in Asia are slowing the growth of the worldwide semiconductor market, which is expected to grow 7% to $US160 billion by the end of 1998, according to the latest prediction from market researcher Dataquest

Dataquest previously forecast that the market would grow to $175 billion, or by 17% during the year, but the firm reevaluated its figures because of the Asian crisis. A formal forecast for the semiconductor market will be completed in April.

Dataquest attributed most of the predicted slowed growth to a decline in worldwide electronic equipment production. The potential lower costs of DRAM manufacturing in Korea -- which would result in lower market prices -- and the devaluation of the won further lowered the semiconductor forecast.

Going into 1998, Dataquest predicts continued oversupply that will force manufacturers to continue efforts to keep prices low.

Additional information about the semiconductor market is available in Dataquest's report entitled "The Impact of the Asian Financial Crisis on Worldwide Electronics Production and the Semiconductor Market."

Dataquest, a unit of GartnerGroup Inc., is based in San Jose, California, and can be reached on the Internet at http://www.dataquest.com/.

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