With the final round of capital spending plans in for 2008, Gartner has lowered its forecast for 2008 to a negative 16.6 percent compared to 2007 actual spending and slightly lower than its December (2007) preliminary forecast for 2008 of 13.2 percent. 

A key reason for the further reductions in spending is the dire market conditions seen in the DRAM arena in the fourth quarter of 2007 and the greater reduction in planned spending announced by DRAM manufacturers to correct oversupply in 2008.

Gartner also noted the reduction in spending from the major foundries for 2008 compared to 2007.

The market research firm doesn’t expect chip manufacturers to increase spending later in the year due to the relatively higher cuts being made at the beginning of the year due to economic recession fears.