GRAZ, AUSTRIA -- The global semiconductor market is expected to grow 6.6% on an annualized basis to $227 billion in 2005, according to fall forecast of the World Semiconductor Trade Statistics. Worldwide growth will accelerate to 8% in 2006 and 10.6% in 2007, with Asia-Pacific being the largest and fastest growing regional market, the trade group said.

WSTS's 2005 projection is higher than the forecast released a year ago, and consistent with the spring 2005 forecast, which estimated a 6.3% growth for the year.

In a press release, WSTS said it foresees a continuation of the growing demand for electronic products such as PCs, digital consumer and mobile communications against the backdrop of a challenging but generally healthy world economy.

The current forecast maintains a “soft landing” scenario as the industry anticipates positive growth throughout the forecasting period with high single-digit growth in 2006 followed by double-digit growth in 2007.

While the forecasted semiconductor market cycle is considerably smoother than previous cycles, several geographic regions and product groups maintain cycles similar to historical patterns. Asia Pacific continues to be seen as the fastest growing region, not only because of a continuing shift in manufacturing but also due to rising domestic demand in this region.

WSTS member companies represent 85% of the world semiconductor market, and all the top 20 companies are members.