STATS v Final DR 18/12/08 10:54 Page 14
14
STATISTICS
Semiconductor equipment
spending to fall to
six-year low in 2009
Following a dismal 2008, global spending
on semiconductor manufacturing
equipment in 2009 will fall to its lowest
level in six years, due to weakening
conditions in the chip equipment markets,
according to iSuppli Corp.
iSuppli anticipates that worldwide
capital spending by chip makers on
semiconductor manufacturing equipment
in 2009 will decline to $35.2 billion,
down 17.6 percent from 2008. This will
mark the lowest level of spending since
2003, when semiconductor capital
spending amounted to $33.8 billion.
The decline in 2009 revenue will extend
the downturn seen in 2008. Through the
first three quarters of 2008, capital
expenditures were down by 15.3 percent
compared to the same period in 2007. For semiconductor equipment makers, became apparent in the third quarter.
iSuppli anticipates that by the end of the sudden market collapse comes as a Beyond the downturn, an expected key
2008, capital expenditures will fall to major letdown compared to previous growth driver for the semiconductor
$42.7 billion, down 21.1 percent from expectations. While the industry as a equipment industry has failed to
$54 billion in 2007. whole remained in an overcapacity materialise: massive capital expansions
“At the start of the second quarter, position at the start of the second quarter for new capacity in China. China has been
semiconductor equipment providers were of 2008, there remained a strong unable to establish a manufacturing base
still reeling from the sharp cuts in capital potential to achieve supply/demand that requires the use of advanced
expenditures from the major memory chip equilibrium with just a modest increase in technologies and expensive new
suppliers,” said Len Jelinek, director and demand. Because of this, semiconductor semiconductor manufacturing equipment.
chief analyst for semiconductor suppliers and chip equipment makers were However, the chip and chip equipment
manufacturing at iSuppli. “Because of looking forward to 2009 with the market in the future will recover and
this, capital expenditures in 2008 already anticipation of modest growth. Leading achieve new growth.
were depressed, with virtually no-one edge chip manufacturers were rushing “The chip market eventually will
spending at historical rates. However, by toward the 28/30 nanometer process rebound as the global economy stabilises
the end of the third quarter, market technology nodes. In the background, the and consumers regain confidence,”
demand virtually stopped as global migration to next generation, 450mm Jelinek predicted.
uncertainty saw companies reporting wafers was becoming a hot topic.
declining sales and falling profits. The However, all these expectations flew out All information kindly supplied by
impact was immediate with significant the window as the severity of the iSupply.
reductions in capital spending.” economic and electronics downturn
www.euroasiasemiconductor.com December 2008 / January 2009
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68