The semiconductor industry is poised on the brink of a return to growth, a senior industry official said today.
Peter Bauer, chief executive of Siemen's semiconductor spin off Infineon Technologies, said the explosion of Internet growth, mobile appliances and smartcards are all major contributors to this return to growth.
Speaking at industry analyst Dataquest's Predicts 99 conference in Paris today, Bauer said the growth in the inclusion of semiconductors in electronics equipment in general will allow the semiconductor market to expand healthily for at least the next few years.
"The user work and play environment is changing and people are getting more mobile. This will generate a lot of volume for the semiconductor industry. Smartcards in particular will push this growth. We believe technology on smartcards such as security will become a core competency of any semiconductor company," he said.
He continued: "The increasing use of mobile phones and the inclusion of chips in luxury cars are also major contributors."
Bauer said the dramatic dip in Dram pricing, by about 90 per cent last year, which hit many semiconductor companies, is also beginning to move upward again.
Joe D'Elia, senior analyst at Dataquest commented: "We at Dataquest have also noticed that the market is on the point of turning, its just a question of when."
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