SAN JOSE — Despite persistent excess inventory concerns, the worldwide semiconductor industry grew 23.4% in 2004, to $219.9 billion, according to research firm Gartner Inc.

"The commodity memory business — dominated by DRAM and NAND flash — was the one device sector immune from soft supply conditions in 2004," said Jeremey Donovan, vice president for Gartner's worldwide semiconductor group. "In terms of vertical markets, wireless and digital consumer electronics were star performers once again."

Intel remained the No. 1 vendor based on worldwide semiconductor revenue for the 13th consecutive year. Intel continued a highly visible push into new markets, most notably into digital cellular and wireless LAN ICs.

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