Online information source for semiconductor professionals

In a revision of its April forecast of a 19.8 percent decline in worldwide capital equipment spending, Gartner, Inc. has forecast a 22.4 percent decrease from spending levels seen in 2007. The market research company have estimated that spending for the year will amount to approximately $49.2 billion and that the decline is a result of oversupply in the DRAM and NAND flash memory segments.

Price declines in both segments will see DRAM spending down 40.5 percent, while NAND flash expenditure is expected to decrease by 19 percent. Overall worldwide memory spending looks set to decline by 32.1 percent. Double-digit declines are also on the cards for all semiconductor equipment sectors, according to Klaus Rinnen Managing Vice President for Gartner's semiconductor manufacturing group.

“The next six to 12 months will be another period of uncertainty and risks for the semiconductor manufacturing and equipment industries,” said Klaus Rinnen, managing vice president for Gartner's semiconductor manufacturing group. “The bursting of the DRAM spending bubble should come as a surprise to no one; the fact that it coincides with downward economic pressures and the uncertain impact on semiconductor demand adds significant risk to an already grim forecast for capital equipment.”