EL SEGUNDO, CA, Dec. 7 -- iSuppli Corp. today cut its forecast for 2005 worldwide semiconductor revenue growth to 4.7%. The forecast is less than half the research firm's November prediction of 9.6%, and a 20-point drop from 2004. 

iSuppli forecasts worldwide semiconductor sales will hit $237.1 billion in 2005. The firm said last month that sales would grow 9.6% in 2005.

iSuppli cited lower sales forecasts for electronics equipment, which is expected to grow 6.2% in 2005, down from 10.1% this year.

The firm also cited growing chip stocks: excess inventories in the supply chain doubled last quarter, to $1.6 billion, iSuppli said.

2006 will mark the low point for IC sales, followed by a recovery in 2007 and 2008, iSuppli predicts.