For 2004, the market will be worth 86 billion dollars, US-based Gartner's principal analyst for the region, Philip Koh, said.

"For the Asia Pacific itself, we are looking at close to 14 percent growth against 2002," Koh said at a media conference.

"Looking ahead, we are talking about more than 20 percent in the year 2004 and 2005," he said.

The projected rise in sales in the region will be driven by buoyant demand in China, South Korea and Taiwan, the three biggest semiconductor markets in Asia, Koh said.

"The demand of semiconductor consumption, particularly in (the) three major countries are really driving up the whole industry," Koh said.

"And of course China will still continue to lead... five years down the road," Koh said at a news briefing.

Globally, the semiconductor market is expected to generate revenues of 173 billion dollars in 2003, up 11 percent from 156 billion dollars in the previous year, Gartner's vice president Richard Gordon said.

Despite the projected improvement, Gordon said there was still "healthy scepticism" due to prevailing global economic uncertainties.

"There is turmoil in the world these days and businesses are being cautious about spending on things like computer technology," Gordon said.

"So we have to be a little bit cautious about the end market here," he said.

SPACE.WIRE