Technology Sector Continues to Grow Despite Industry Doom and Gloom News

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Technology Sector Continues to Grow Despite Industry Doom and Gloom News

With the recent technology stock declines and layoffs and the recent news from the world’s largest computer chip supplier, Taiwan Semiconductor Manufacturing Company, that it is forecasting a dismal outlook for product demand for the remainder of 2002, the technology sector continues to grow. New digital technology products continue to be in hot demand by consumers and this is expected to continue. Consumers are in love their MP3 players, DVD players, cellphones, handheld computers, digital cameras and home personal computers. This love affair is spurring the sales of other technology devices, as users become more technology literate.

And this good news is not limited to only the consumer sector. According to the Richard Shaffer, Editor in Chief of VentureWire, technology companies that offer savings to corporations in their areas of basic operations along with their products and services will continue to do well and receive venture financing. While venture capital investments are below their peak level in 2000, venture capital investments in technology start-up companies for the first two quarters of 2002 averaged $6 billion per quarter (compared to $27.4 billion in the second quarter of 2000). According to VentureWire Research, a company that tracks venture capital investments, the current venture capital investment rate remains 40% higher than at any other time during the past 10 years, with the exception of the second quarter of 1999.