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iSuppli expects semiconductor capital spending to decline by 21.1% in ‘08

11 December 2008 | By Mark Osborne | News > Fab Management

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Worldwide semiconductor capital spending is expected to decline by 21.1% in 2008, according to iSuppli Corp. Worldwide semiconductor capital spending is expected to decline by 21.1% in 2008, according to the latest figures from iSuppli Corp. Sales in 2007 were US$54 billion but the revised 2008 projection puts that figure at US$42 billion.

“At the start of the second quarter, semiconductor equipment providers were still reeling from the sharp cuts in capital expenditures from the major memory chip suppliers,” said Len Jelinek, Director and Chief Analyst for semiconductor manufacturing at iSuppli. "However, by the end of the third quarter, market demand virtually stopped as global uncertainty driven by the threat of the collapse of the financial markets threw consumers into a tailspin."

Further declines are expected in 2009, iSuppli said, pointing to a 17.6 percent decline over 2008, resulting in the worst spending levels since 2003. Sales are projected to reach only $35.2 billion. In 2003, spending declined to $33.8 billion, according to the market research firm.

Sales are projected to reach only $35.2 billion in 2009

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