Dataquest Forecasts Worldwide Microprocessor Market to Thrive through the Year 2000.

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 21, 1996--The worldwide microprocessor market is poised for continued growth through the rest of this decade, according to a new Dataquest study that forecasts the market to grow 18 percent per year through the year 2000.

Dataquest predicts the market will grow from $14.2 billion in 1995 to $33.6 billion in 2000. This year the market is on track to reach $17.1 billion. Dataquest analysts expect the computational CISC segment, which includes the x86 microprocessors used in personal computers, to be the most profitable area in the entire semiconductor market.

"The good news is that a pot of gold awaits any vendor able to achieve success in this market," said Nathan Brookwood, principal analyst in Dataquest's Semiconductor Applications program. "The bad news is that Intel stands watch over this pot of gold, and any contender must first defeat, or at least distract, Intel before reaping any benefits in this market. This has proven to be a formidable task."

Compute microprocessors will garner more than 90 percent of the microprocessor revenue, but they will account for less than half of the unit shipments. "This market will continue to succeed because new applications will continue to drive demand for higher-performance systems, with most users upgrading their systems every two to three years," said Brookwood.

The embedded microprocessor market will grow at a compound growth rate of 12 percent through the year 2000. The market is forecast to grow from $1.8 billion in 1995 to $3.1 billion as we begin the 21st century.

"Unlike the compute segment, which is effectively closed to new participants, the embedded market has opportunity for a number of vendors and processors besides 8086 derivatives," said Tom Starnes, director and principal analyst of Dataquest's Embedded Microcomponents Worldwide program. "The architecture that provides superior support for applications in telecommunications, video games, printers, automotive, and industrial control can tie down a corner of those markets. The inventory correction and general slowdown in the embedded marketplace seen in early 1996 will turn around in the second half and return to normal buying levels."

Additional information about the microprocessor market is available in two detailed reports titled "Microprocessor Forecast and Embedded Microprocessor Trends through the Year 2000" (product code MCRO-WW-MT-9602) and "Compute Microprocessor Market Trends and Forecast" (product code PSAM-WW-MT-9604). These reports provide in-depth forecasts and analysis of the microprocessor market through the year 2000.

Dataquest will examine the major issues facing the semiconductor market during Semiconductor '96, its 22nd Annual Semiconductor Conference titled "$300 Billion Challenge: Let the Games Begin." The two-day conference will be held this week, October 24-25, at the Renaissance Esmeralda Resort in Indian Wells, California. Dataquest analysts and industry executives will forecast where the market is heading and how companies can maintain their competitive advantage. For registration or press pass information, please contact Ann Fitch at [phone].

For more information about purchasing the reports listed above, or subscribing to Dataquest's programs, please call 800-419-DATA. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com.

Dataquest is a 25-year-old global market research and consulting company serving the high-technology and financial communities. The company provides worldwide market coverage on the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the information technology industry. Dataquest is a Gartner Group Company.

CONTACT: Dataquest

Tom McCall, 408/468-8312

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