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Industry Report

Industry reports, briefs issued by Samsung Economic Research Institute

Korea's Info-tech Industry in 2006 and Beyond

Korea's Info-tech Industry in 2006 and Beyond

KWAK Soo-Jong

Jan. 23, 2006

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Expectations are growing for recovery in the global information technology industry. Such optimism rests on the following five reasons: 1) the world economy will grow by 3.3-4.3% in 2006 while there's improvement in consumer sentiment in the telecommunications sector; 2) investment in info-tech by Asia-Pacific countries is expected to increase 7% this year to a total of US$210 billion; 3) major market research firms, including Gartner Dataquest, are bullish about the info-tech market in 2006; 4) the book-to-bill ratio for semiconductor equipment - a key measure for growth of chip order - is steadily improving; 5) the tech-cycle, referring to growth cycle of the semiconductor industry, is on the cusp of an expansionary phase in its seventh cycle.

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