Chip Sales in '03 Beat Forecasts; How Long Will It Last?; Industry looks to return to 2000's record highs; Centrino gives a boost.(INTERNET & TECHNOLOGY)

Byline: JAMES DETAR

When it came time for Craig Barrett to deliver a forecast for the chip industry, the Intel Corp. chief opted to quote Yogi Berra.

"The future ain't what it used to be," said Barrett, speaking at a media event in November.

He meant that in a good way. 2003 started out looking like a year that most chipmakers would rather forget. But the industry did a 180, and the future now looks a lot brighter for chipmakers.

When the books close on 2003, chip sales will have risen 15.8% to $163 billion, says the Semiconductor Industry Association. Compare that with the SIA's earlier forecast of just over 10% growth.

"The year started with a great deal of turmoil in the geopolitical world, but that got sorted out early," said SIA President George Scalise. "It's been an outstanding year."

The SIA forecasts nearly 20% growth in 2004 to $195.6 billion. That would put it in range of the all-time top of $204 billion set in 2000.