PC semiconductor market to grow 18 % in 2004

The worldwide PC semiconductor market is expected to grow by 18 per cent this year to $53.6 bn as the computer market snaps back after a three-year slump, according to data released on Tuesday.

International Data Corp (IDC) forecast that the industry, which includes chips for both desktop and notebook PCs, will expand at a compound annual growth rate (CAGR) of 7.8 per cent to $66.1 bn in 2008 from $45.4 bn in 2003. “The recovery of the PC semiconductor market will hit its stride in 2004, specifically in the second half of the year,” Shane Rau, IDC’s lead PC semiconductor analyst, said in a statement.

“Carrying the recovery along will be the key trends of mobility, connectivity, and increasing overlap between the consumer and PC markets.”

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IDC forecast the notebook PC semiconductor industry will grow at a CAGR of 16.1 per cent, while the more mature desktop sector will grow at a slower 2.9 per cent.

As a result, mobile PC semiconductor revenue will nearly equal desktop revenue by 2008. Intel Corp and Advanced Micro Devices Inc are the world’s top two makers of central processing units (CPUs), the semiconductor “brains” at the heart of each PC.