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Intel, Samsung lead capex race '06

Posted: 05 Jan 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Mark LaPedus? Intel? Samsung Electronics? semiconductor? Pacific Crest Securities?

Intel Corp. and Samsung Electronics Co. Ltd are projected to tie for first place in terms of projected capital spending in the semiconductor industry for 2006, according to a report from Pacific Crest Securities Inc.

Intel and Samsung are separately projected to spend $5.5 billion in 2006, down 4 percent from 2005, according to Pacific Crest. In 2005, Intel and Samsung spent $5.7 billion and $5.739 billion, respectively, in terms of capital expenditures, according to the investment banking firm.

Overall, worldwide capital spending is expected to hit $47.155 billion in 2006, up 1 percent from $46.562 billion in 2005, according to Pacific Crest. "We continue to believe that capital spending by device manufacturers is creating less volatility in the capital-spending cycle," according to the firm.

In the capital spending rankings, Intel and Samsung are projected to lead the pack in 2006, followed by Hynix ($3.2 billion), TSMC ($2.7 billion), Toshiba ($2.2 billion), Sony ($1.7 billion), Elpida ($1.5 billion), UMC ($1.5 billion), Micron ($1.45 billion), Infineon ($1.4 billion) and AMD ($1.4 billion).

STMicroelectronics is next at $1.25 billion, followed SMIC ($1.2 billion), TI ($1.1 billion), Matsushita ($1 billion), IM Flash ($1 billion), IBM ($900 million), NEC ($800 million), Fujitsu ($800 million), Renesas ($800 million), Spansion ($800 million), Powerchip ($770 million), Chartered ($700 million), ProMOS ($700 million) and Freescale ($500 million).

IM Flash is the joint flash venture between Intel and Micron. In terms of growth, UMC's capital spending is projected to increase by 50 percent in 2006 over 2005. Hynix' spending is projected to jump by 49 percent in 2006, while Micron is expected to see its expenditures increase by 37 percent.

NEC and Powerchip are expected to see their spending drop by 40 percent and 51 percent, respectively, in 2006.

In 2005, Samsung was the biggest spender at $5.739 billion, followed by Intel ($5.7 billion), TSMC ($2.7 billion), Hynix ($2.154 billion), Toshiba ($2.005 billion), Infineon ($1.625 billion), AMD ($1.6 billion), Powerchip ($1.575 billion), Elpida ($1.52 billion), Sony ($1.5 billion), STMicro ($1.5 billion), NEC ($1.329 billion), TI ($1.3 billion), Matsushita ($1.2 billion), SMIC ($1.1 billion), Micron ($1.062), UMC ($1 billion), IBM ($900 million), Fujitsu ($813 million), Renesas ($765 million), Chartered ($750 million), ProMOS ($660 million) and Freescale ($600 million).

- Mark LaPedus
EE Times




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