The Fabless Semiconductor Association (FSA), announced the release of its 3Q 2002 Wafer Demand Survey Report. The survey noted a significant 9 percent increase in actual wafer demand for Q2 2002 over the 3percent increase in Q1 2002 from Q4 2001. However, compared to the previous forecast, Q2 2002 wafer demand was only 88 percent of the previous forecast. The survey participants lowered their forecast growth in wafer demand for the remainder of 2002 and all of 2003, which is consistent with prevailing market sentiment.

On a positive note, the Q2 2002 9% quarter-over-quarter (Q-o-Q) increase in aggregate actual wafer demand for returning respondents from the 2002 annual survey indicates that recovery will be moderate and gradual, with considerable individual company variability. Overall, the returning respondents from the 2002 annual survey (fabless and integrated device manufacturers) expect steady Q-o-Q wafer demand increases in Q3 2002, Q4 2002, Q1 2003 and Q2 2003.