The semiconductor-tools industry is poised for dramatic growth in 2004, according to a new report from research firm Gartner. Demand is being driven by a seemingly insatiable consumer appetite for electronics devices, such as cell phones.

Worldwide semiconductor capital spending is on pace to reach US$44.8 billion this year, growing 50.9 percent from 2003, according to Gartner. Capital equipment spending is forecast to grow 63.5 percent in 2004.

The Semiconductor Industry Association said sales rose in May to their highest level in more than three years, reaching $17.32 billion — an increase of 36.9 percent compared to the same month a year ago.

The wild card will be China, with its seemingly insatiable demand for commodities and capital goods across all industry sectors. China’s economic growth will be very important for accelerating global semiconductor growth.