ISuppli Corp has reduced its forecast for worldwide semiconductor revenue growth in 2005 due to a slowing of electronic equipment production, combined with a continued overage in chip inventories.

Worldwide semiconductor sales are expected to rise to US$237.1billion in 2005, up 4.7percent from US$226.6billion in 2004, according to iSuppli's newly-revised forecast. Suppli previously had predicted 9.6percent growth in semiconductor revenue in 2005.
Electronic equipment production, which drives semiconductor sales, is expected to increase by 6.2percent in 2005, down from 10.1percent in 2004.
The semiconductor industry in early 2005 will continue to contend with the excess inventories that flared up in the third quarter of 2004. This will depress semiconductor Average Selling Prices (ASPs) and restrain growth in 2005.
Meanwhile, despite a marked slowdown in semiconductor revenue growth as the industry entered the fourth quarter, 2004 has been a good year for the majority of chipmakers, according to iSuppli's preliminary market-share rankings. Of the 92 semiconductor suppliers tracked, 83 are expected to achieve annual revenue growth in 2004.
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