CHIP COMPANIES EXPECTS BIG DEMAND RISE.A group of fast-growing chip makers expects chip demand to grow in double-digits for the next two years, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a survey being released recently. The Fabless Semiconductor Association, a group of 240 chip companies that don't own their own factories and that outsource manufacturing, expects demand for chip wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. , the underlying wafers from which chips are made, to increase 39 percent in 2000 and 48 percent in 2001. In 1999, sales increased 55 percent, well above an expected 43 percent. The so-called fabless companies Fabless Company The Fabless Semiconductor Association (FSA) defines fabless as follows: Fabless (without fab) refers to the business methodology of outsourcing the manufacturing of silicon wafers, which hundreds of semiconductor companies have adopted. are strongest in the communications market, which is experiencing a boom driven by the growth of the Internet and cellular phones, says Mark Edelstone, an analyst at Morgan Stanley
As a result, Edelstone said contract chip makers, such as Taiwan Semiconductor Manufacturing Co., are more than doubling their capacity expansions this year. About 54 percent of fabless company sales are expected to be communications-related this year, compared with about 27 percent for the personal computer. That compares with 27 percent communications-related sales in 1999. Fabless companies accounted for $12 billion of the worldwide semiconductor industry's 1999 revenue of $144 billion. |
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