The Asian crisis will slow world sales of semiconductors in 1998, but it will also reduce production capacity, paving the way for a rebound in 1999, the chief economist of a leading European semiconductor maker said on Tuesday.

The first half of the year will be six 6 per cent now appears more likely. But he forecast growth of between 15 and 20 per cent in 1999, depending on how fast the PC business rebounds and how quickly Korea's economy recovers.