Online information source for semiconductor professionals

Applied Materials lowers wafer fab capital spending forecast

26 May 2011 | By Mark Osborne | News > Fab Management

Popular articles

New Product: Applied Materials new EUV reticle etch system provides nanometer-level accuracy - 19 September 2011

Oberai discusses Magma’s move into solar PV yield management space - 29 August 2008

‚??Velocity‚?? the new buzzword in Intel‚??s PQS annual awards - 12 April 2012

Applied Materials adds Jim Rogers to Board of Directors - 29 April 2008

New Product: ASML Brion‚??s Tachyon MB-SRAF enables OPC-like compute times - 19 September 2011

Despite record quarterly revenue and earnings, Applied Materials chairman and chief executive, Mike Splinter rattled-off a number of depressing conditions in a conference call to discuss quarterly results that were tempering short-term economic growth, which would impact orders at the equipment supplier.

Rising inflation in emerging markets and reduced consumer confidence as well as the turmoil caused by the natural disasters in Japan where only some of the issues raised.

Splinter also highlighted the unrest in the Middle East, which had generated uncertainty about energy prices and fuel cost. He also noted that DRAM capital investment remained low and limited to technology conversions only at the moment as overcapacity remains an issue and prices remain depressed.

This all led to Splinter lowering expectations on wafer fab equipment spending for 2011. Splinter noted in the call that WFE capital spending is expected to be in the range US$31 billion to US$34 billion.

In February, 2011 Splinter had forecasted WFE spending would be in the range of US$34 to US$36 billion.

However, Splinter later reiterated the WFE spending forecast given at its recent analyst event for 2012, which is for spending to be in the range of  US$35 billion plus or minus a couple of billion dollars. However, with equipment order push-outs already impacting quarterly results at Applied, the forecast could actually be at the low level.

Despite the downward revised spending forecast for this year, Splinter noted that the longer-term outlook for WFE spending remains strong.

“Industry fundamentals remain solid, with the top spenders reaffirming or increasing their capital investments,” noted Splinter in the conference call. “The leaders in logic and foundry are accelerating their plans for the 28- and 22-nanometer nodes, and increasing their investments in leading-edge technology.”

Related articles

Nikon lowers lithography sales forecast as capex spending falls - 30 October 2008

Gartner lowers semiconductor capital spending forecast for 2008 & 2009 - 08 October 2008

VLSI Research up semiconductor equipment spending and IC forecast - 19 January 2011

2003 semiconductor industry capital spending trends - 01 September 2003

Capital spending to decline 40 plus percent in 2008, says Applied Materials’ Splinter - 13 May 2008

Reader comments

No comments yet!

Post your comment

Please enter the word you see in the image below: