Chip making equipment market to bounce back in 2014
The market for chip manufacturing equipment is going to be worth $35.8 billion in 2013, a fall of 5.5 percent from 2012, according to market research firm Gartner Inc.
Overall the semiconductor industry's capital spending – which can include things like construction of buildings – will decrease by 3.5 percent in 2013, the firm said.
However, Gartner reckons that 2014 and 2015 will be boom years across most of the types of semiconductor manufacturing test and assembly and packaging. In 2014 capital spending will increase 14.2 per cent, followed by 10.1 per cent growth in 2015 (see table below).
Capital spending for logic chip manufacture is stronger than spending for memory in 2013. Logic spending will only decline 2 percent while memory spending will continue to be weak. In 2014 the foundry segment is set to increase its spending while integrated device manufacturers (IDMs), and semiconductor assembly and test services providers will show spending declines.
Click on image to enlarge.
Worldwide semiconductor manufacturing equipment market forecast, 2012 to 2017 (in millions of US dollars). Source: Gartner.
"Weak semiconductor market conditions, which continued into the first quarter of 2013, generated downward pressure on new equipment purchases," said Bob Johnson, research vice president at Gartner, in a statement. "However, semiconductor equipment quarterly revenues are beginning to improve and positive movement in the book-to-bill ratio indicates that spending for equipment will pick up later in the year. Looking beyond 2013, we expect that the current economic malaise will have worked its way through the industry and spending will follow a generally increasing pattern in all sectors throughout the rest of the forecast period."
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