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SEMI forecasts strong growth for A-PAC chip industry

Posted: 13 May 2011 ?? ?Print Version ?Bookmark and Share

Keywords:IC industry? forecast? fab spending?

2010 was a record year for Singapore's semiconductor industry and the strong growing trend is continuing through 2011. At SEMICON Singapore 2011, the annual exhibition that connects Southeast Asia's semiconductor industry held this year at Suntec Singapore, SEMI Singapore forecasts the fab spending in Southeast Asia to grow 43.8percent year-on-year.

Industry forecast for semiconductor revenue growth for 2011 is expected to reach a range of 5 to 10 percent. With positive demand in the electronics sector, especially for mobile devices, SEMI expects the semiconductor industry to keep continued growth. Terry Tsao, president of SEMI Southeast Asia says, "In Southeast Asia, we are looking at almost 17 percent growth in fab capacity this year, which surpasses the global growth at 9 percent. This includes over 28 percent increase in installed 300mm fab capacity. "

fab capacity

The global semiconductor equipment spending in 2011 is expected to increase by 16 percent with current estimation of 3 percent increase for 2012. At 16 percent growth, 2011 would see the second highest level in equipment spending for the semiconductor industry, second only to the $48 billion spent in 2000.

In the Southeast Asia region, total semiconductor equipment spending is expected to reach $4.3 billion and $4.9 billion in 2011 and 2012, respectively. For 2011, about $2.6 billion to $2.8 billion will be spent on fab equipment, $900 million for test equipment, and $600 million on packaging equipment. In addition, the total semiconductor materials spending in Southeast Asia will reach $7.5 billion and $7.7 billion in 2011 and 2012 respectively. Packaging materials account for $5.8 billion of the spending this year, with fab materials spending forecasted to reach $1.7 billion.

equipment forecast

materials forecast

The positive outlook of the industry reflects on the growth of SEMICON Singapore. This year, more than 145 companies across 14 countries are exhibiting at SEMICON Singapore. More than 6,000 visitors are expected to gather at this 3-day exhibition and conference to learn the market trends and updates.

"Most experts, including those presenting during this SEMICON Singapore event, expect 2011 to be another strong year for semiconductors. Utilization rates for leading technologies remain high and equipment purchases have returned to levels last seen in 2007. I anticipate rather solid performance in Asia," says David Wilhoit, president and CEO of Siltronic Samsung Wafer.


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