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IC capital spending to slip 47.9% this year

Posted: 15 Sep 2009 ?? ?Print Version ?Bookmark and Share

Keywords:IC capital spending? semiconductor industry? wafer fab?

Despite a significant improvement in 2H, worldwide semiconductor industry capital spending will decline by 47.9 percent to $22.9 billion this year, according to the latest forecast by market research firm Gartner Inc.

Gartner expects 2H capital spending to improve by 47.3 percent compared to 1H 09, the firm said.

Chip industry capital equipment spending will rebound in 2010, when revenue is forecast to increase 34.3 percent to $30.7 billion, Gartner said. All segments of the market are expected to grow in 2010, the firm said.

"Equipment purchases for the remainder of 2009 and the first half of 2010 will be mostly technology buys, as memory companies get ready for copper implementation, and double patterning for critical geometries in the 5x nm and 4x nm generations," said Dean Freeman, research vice president at Gartner, in a statement.

In July, Gartner forecast that 2009 capital spending to decline by 44.8 percent to $24.3 billion. The firm had earlier in the year projected that IC industry capital spending would amount to only $16.9 billion for 2009.

Wafer fab equipment spending is expected to decrease 48.8 percent to about $16 billion in 2009. The firm said it expects equipment spending in 2010 to grow by 38.3 percent, reaching $22.2 billion.

Spending on packaging and assembly equipment is forecast to decrease 43.1 percent to $2.3 billion in 2009, then increase 40.5 percent to $3.2 billion in 2010, Gartner said. The recovery for packaging and assembly equipment began in Q2 as the market bounced off its sharp correction in Q4 08 through Q1 09, Gartner said.

Automated test equipment spending is on pace to decline 36.5 percent in 2009 to $1.6 billion, Gartner said. After falling substantially for several quarters, the ATE market recovered in the second quarter of this year. Growth is expected to continue over the next several quarters as device demand improves. The firm projects that ATE spending will rise to $2.2 billion in 2010.

Click on image to enlarge.

- Dylan McGrath
EE Times





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