New Uses for Chips May Explode Sales Growth

Worldwide semiconductor sales will show double-digit growth in the next three years as manufacturers find places for them in a variety of devices other than the personal computer, according a report released today.

Sales of semiconductors are growing at a rate of at least 25% as electronics manufacturers put them in cellular phones, gaming consoles, cameras, set-top boxes, hand-held electronic organizers and other devices, Gartner Group research unit Dataquest said in a new report.

Total worldwide revenues in 2000 alone are expected to jump 37% over 1999, to $231.6 billion, before moderating somewhat in 2001-02 and moving into a slight downturn in 2003, according to the Dataquest forecast.

The report, and several others, cast doubt on reports of sluggish computer sales in Europe.

Intel Corp. and Dell Computer Corp. have seen their stocks tumble after warning that upcoming quarterly earnings will show revenue below Wall Street expectations because of weak European sales.

A separate report from research firm International Data Group predicted European semiconductor sales will grow by 13% this year.