STAMFORD, Conn.-Although semiconductor revenue will rise 23 percent to $218 billion for 2004, the second half witnessed a significant downturn, according to a report by Gartner Inc.
“The sudden downturn in the semiconductor market in the final months of 2004 has been caused by vendor sensitivity to an incremental buildup of channel inventory,” said Gerald Van Hoy, industry analyst for Gartner’s Semiconductors Worldwide group. “In a break from the past, semiconductor vendors have reached quickly and decisively by throttling back output. They are determined to avoid the type of market crash that occurred in 2001 following a huge inventory buildup.”
Intel maintained its lead for the 13th consecutive year in sales, followed by Samsung Electronics, which had a 47-percent jump in revenue. Texas Instruments Inc. was third.
