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Gartner lowers semiconductor capital spending forecast for 2008 & 2009

08 October 2008 | By Mark Osborne | News > Fab Management

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Gartner lowers semiconductor capital spending forecast for 2008 & 2009According to Gartner the fall in overall semiconductor capital equipment spending in 2008 will be worse than previously projected in July, 2008. Instead of a spending decline of 19.8 percent expected for this year, compared to 2007, the market research firm is guiding spending to decline by 25.7 percent to a total of $47.1 billion. The weaker economy and the collapse in memory manufacturers spending were at the route of the revised projections, Gartner said.

“The excess spending of 2006 and 2007 has hit home in 2008, as the semiconductor equipment industry will continue to feel the pinch well into 2009,” said Dean Freeman, Research Vice President for Gartner's semiconductor manufacturing group. “The oversupply in the memory sector and a slowdown in consumer spending due to the economic crisis in most of the G8 (which includes Canada, France, Germany, Italy, Japan, Russia, United Kingdom, and United States) economies are having an impact on consumer electronic consumption, which in turn impacts foundry and integrated device manufacturer (IDM) spending.”

The industry woes are set to continue in 2009 as Gartner is projecting capital spending across the industry will decline by a further 12.8 percent over 2008.

As with the decline in overall capital spending that includes test and packaging, worldwide wafer fab equipment spending is set to decline 26.1 percent in 2008, to $26.6 billion. In 2009, wafer fab equipment spending is projected to fall to $22.4 billion.

A recovery in capital spending is projected for 2010 with growth of 16.7 percent and 23.1 percent for 2011.

 Gartner: WW semiconductor equipment spending

 

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