Dataquest Sees Lower Chip Growth in 1998

The worldwide semiconductor market is expected to grow a moderate 8% in 1998, but will return to double-digit growth in 1999, according to research firm Dataquest. Analysts with the San Jose-based firm cited the Asian financial crisis and a weak pricing environment for dynamic random-access memory chips as factors in the restrained growth of the market. Dataquest, a unit of Gartner Group Inc., said semiconductor sales this year are projected to reach $159 billion. But the industry will grow 18% in 1999, it added, with revenue surpassing $188 billion.