The industry's second-half 2003 performance was one of the strongest on record, supported by growth of US gross domestic product of 8.2 percent in the third quarter and 4.0 percent in the fourth quarter, and the satisfying of pent-up demand dampened in the run-up to the Iraq war, SIA said.

On a quarterly basis, the industry recorded an 11 percent revenue increase to 48.1 billion dollars in the fourth quarter from 43.3 billion in the third quarter.

In December alone, revenue jumped 28 percent on a 12-month basis.

"The industry's broad, upward momentum across all product sectors and geographic markets is driving us toward another year of strong, double-digit growth, which is now expected to exceed 19 percent in 2004," SIA president George Scalise said.

All geographic markets recorded rising chip sales in the final quarter of 2003 from the third quarter, with sales in Europe up 14.5 percent, sales in Japan up 10.5 percent, sales in the Americas up 10.2 percent, and Asia-Pacific revenue up 10.0 percent, SIA said.

SPACE.WIRE