But it warned the "initial signs of a slowdown" in the sector had already appeared, including "sharp corrections" in high-tech stocks, a weakening of the U.S. purchasing managers' index for manufacturing and a substantial drop in China's imports of electronic goods.
The Fund added that China's diminishing appetite for electronics coupled with tighter profit margins were likely to have particularly "negative repercussions" for South Korea and Taiwan, which supply parts and components to Chinese manufacturers.
It also noted that the rapid pace of capital equipment spending risked leading to excess supply in some segments, "especially flash memory, with expected falls in prices and profit margins."
More serious for the region, particularly export-dependent economies like Thailand and Malaysia, is a prolonged slowdown in the U.S. market. But the IMF added that the impact of a downturn could be softened somewhat by higher consumption in China.
In addition, South Korea and Taiwan "have become more resilient to the tech cycle by establishing their own niche markets and brand names," the report said.
The IMF also said long-term prospects for memory chip producers remained promising, with the impending release of Microsoft's Windows Vista operating system and rising DRAM usage in mobile phones and gaming applications could also boost sales.
The IMF estimates that Asian producers would capture nearly 50 percent of the global semiconductor market by 2009, with Japan, South Korea and Taiwan being the major beneficiaries.
The Business of Going DigitalDigital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
What The Business Really Thinks Of IT: 3 Hard TruthsThey say perception is reality. If so, many in-house IT departments have reason to worry. InformationWeek's IT Perception Survey seeks to quantify how IT thinks it's doing versus how the business views IT's performance in delivering services - and, more important, powering innovation. The news isn't great.