Global semiconductor industry is expected to enter a slump in 2005, following the palmy year of 2004, In-Stat forecast in Los Angeles on Tuesday.

In-Stat, a high-tech market research firm, releasing its new Semiconductor Product Market Forecast report, said global semiconductor revenue will decline by 5.7 percent to 199.3 billion US dollars in 2005.

"This downturn comes on the heels of 2004 annual revenue growth of 27 percent and annual revenue of 211.4 billion dollars, a new record," In-Stat said.

But this downturn will be far less severe, the market research firm said, because it is taking place within a relatively strong worldwide economy, an economy which is expected to grow by 4.3 percent in 2005.

In-Stat expects growth to resume in 2006 and continue through 2008, before the industry suffers another mild downturn in 2009.

The firm believes that new, mostly consumer-oriented products are diverse, and no single new product is expected to drive the industry to the extent that PCs and mobile phones have in the past.

Source: Xinhua