Chip equipment sales may grow 5%

Global semiconductor equipment sales may rise as much as 5 percent this year as demand for consumer electronics increases, said Stanley Myers, president of industry group Semiconductor Equipment & Materials International.

"I'm hedging my bet on zero growth or as much as a positive 5 percent," Myers, 68, said in an interview in Singapore. "It will be driven by entertainment, consumer products."

His forecast contrasts with the association's December call for a 5 percent decline in sales.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), South Korea's Samsung Electronics Co and other customers of equipment makers projected last month that demand for chips would rebound in the second half of the year.

Sales of semiconductor gear could rise to US$38.8 billion this year, based on Myers' prediction.

Demand of chips used to make personal computers, DVD players and digital music players may rise 5 to 7 percent this year from a US$214 billion year earlier, Myers said.

Meanwhile, global sales of made-to-order chips this year are poised to shrink for the first time in four years as customers scale back orders to reduce inventory, market researcher ISuppli Corp said.

Worldwide revenue from companies that exclusively make so-called foundry chips will shrink 6.2 percent to US$15.9 billion this year, compared with 6.1 percent growth projected for the broader semiconductor industry, the El Segundo, California-based researcher said yesterday in an e-mailed statement.