European semiconductor revenue is projected to reach $29 billion in 2001, a 33 per cent decrease from 2000. The worldwide semiconductor market, in comparison, has been forecasted to drop 35 per cent in 2001 compared to 2000, according to Gartner Dataquest.

Mr Andrew Norwood, senior analyst at Gartner Dataquest, said 2001 would see the largest semiconductor revenue downturn ever recorded. However, he said the semiconductor industry was characterised by its cyclical revenue growth and 2002 would mark the start of a recovery.

By 2003, Gartner expects the European semiconductor market to be in the middle of a full-blown growth cycle with a growth rate of 31 per cent.