Semiconductor Industry Expected to Rebound

After one of its biggest slumps, the semiconductor industry will rebound in the second half of this year, grow 20% next year and 25% in 2003, the Semiconductor Industry Assn. said. What distinguishes this slump from the last one, which began in 1996 when the industry waited 12 quarters before cutting back on capacity, is that this time chip companies started paring capacity in only two quarters, the trade group said. This year, the global chip market is forecast to shrink 14%, compared with a 16.5% decrease in 1985, the SIA said, though many analysts have said they still believe that 2001 could surpass 1985 as the biggest year-on-year decline in chip sales.