Bill McClean, IC Insights, Inc.

ABSTRACT

After steep declines in 2001 and 2002, worldwide semiconductor industry capital spending is forecast to show a 15% increase in 2003 to $31.9 billion. Total semiconductor industry capital spending in 2007 is expected to reach about $44 billion.When using the $44 billion figure for 2007, the 1994-2007 CAGR for semiconductor capital spending is only 5.2% (about 7 points less than the 12.1% 1978-2002 CAGR). It is interesting to note that the 1994-2007 CAGR in the semiconductor market is forecast to be only 6%, illustrating the tight correlation between semiconductor market growth and capital spending.