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March 23, 2012

Worldwide semiconductor manufacturing equipment spending to decline by 11.6% in 2012

Semiconductor manufacturing equipment globally will bounce back with a 10.5% growth in 2013 to reach $43bn, says Gartner

By CBR Staff Writer

Worldwide semiconductor manufacturing equipment spending is projected to be $38.9bn for the year 2012, a decline of 11.6% compared with 2011 spending of $44bn, according to Gartner.

Gartner managing vice president Klaus Rinnen said weak market conditions in the second half of 2011 caused pullbacks in expansion plans throughout the semiconductor manufacturing industry.

"This investment weakness will continue through the first half of 2012 and will surge in the second half of the year. We’re basing these assumptions on the aggressive spending plans announced by the major semiconductor manufacturers." Rinnen added.

The research firm foresees spending of worldwide semiconductor manufacturing equipment to bounce back with a 10.5% growth in 2013 to reach $43bn.

It is expected that worldwide semiconductor capital spending would reach $60.9bn in 2012, a decline of 7.3% from 2011 spending of $65.8 billion.

Gartner foresees capital spending to grow 3.5% in 2013.

The wafer fab equipment (WFE) market rose 13.3% in 2011, but it is forecast to decrease by 12.7% in 2012.

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According to analysts at the research firm, wafer fab manufacturing capacity utilisation will decline into the low 80% range by mid 2012, before slowly increasing to about 90% by the end of 2012.

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