Global semiconductor capital equipment spending will see a growth of 10.2% to $44.8bn in revenue in 2011 compared to 2010 spending of $40.6bn, according to IT research firm Gartner.
Aggressive foundry spending, integrated device manufacturer (IDM) logic capacity ramping up at the leading edge, and memory companies gearing up for double patterning will attribute to this growth, Gartner analyst said.
Analysts have, however, indicated a slight spending decline in 2012 due to a looming semiconductor inventory correction, coupled with foundry oversupply.
A decline of 2.6% will be seen in semiconductor capital equipment spending in 2012, followed by 8.9% growth in 2013, while the next cyclical decline should begin in late 2013, as the impact of memory oversupply takes its toll.
A growth of 11.7% is likely in worldwide wafer fab equipment (WFE) in 2011, where Intel, foundry and NAND spending will drive the need for leading-edge equipment, Gartner said.
Smallest growth of 3.6% is expected in the worldwide packaging and assembly equipment (PAE) revenue due to softening of orders as supply comes in line with demand, whereas most major tool segments will see growth in 2011.
A growth of 6.9% is expected for the worldwide automated test equipment (ATE) market in 2011 due to the continued demand from system on a chip and the advanced radio frequency segments of the market.
Gartner said that memory ATE will likely see a decline in 2011 as DRAM capex softens, whereas NAND testing platforms should remain strong this year.
