Spotlight: Asian Woes Expected to Slow Semiconductor Sales

The Asian financial crisis will stunt growth in the global semiconductor market this year, with sales rising 7% rather than the 17% seen earlier, San Jose-based market researcher Dataquest said. The slowdown is due to falling production of electronic equipment, which uses chips. South Korean chip makers will enjoy cheaper production costs due to a depreciated currency, which should keep prices low. Dataquest now expects the market to grow to $160 billion, down from forecasts of $175 billion.