Although just under half of those surveyed said they expected a gradual slowdown in the sector in the January-March period, just over half believed the April-June period would show an improvement from the prior quarter, according to the survey taken by the Nihon Keizai Shimbun.

Manufacturers appear to be pinning their hopes on digital electronics, which are expected to proliferate further as prices edge lower, the newspaper said.

When asked which digital electronics products would drive the recovery, nearly nine out of 10 respondents cited flat-panel televisions, eight out of 10 picked cellular phone devices and more than seven out of 10 mentioned DVD recorders, the survey said.

The poll, taken between late November and early December, elicited 47 valid responses from firms such as chipmakers and electronic parts producers, the newspaper said.

When the global IT bubble burst in 2001, electronic components makers' earnings nose-dived.

Advanced features and falling prices are now luring consumers both in Japan and abroad to digital electronics, underpinning the digital electronics market for a relatively long period of time, the newspaper said.

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