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Semiconductor equipment sales to fall nearly 50% in 2009, says VLSI Research

29 January 2009 | By Mark Osborne | News > Fab Management

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VLSI Research has recently revised is forecasts for the semiconductor industry, noting that the lack of visibility has become the norm while capital spending cuts impact semiconductor equipment suppliers in 2009. The market research firm now expects equipment sales to fall 49% in 2009, compared to 2008.

The company projected that equipment sales would reach US$40.9 billion in 2008 - a decline of 26.7% compared to 2007. Equipment sales are now expected to reach only US$20.8 billion in 2009.

The recent equipment bookings levels may have risen in recent months, but these are not enough to support growth in 2009, VLSI Research noted. Monthly revenues are expected to decline to below the 36-month rolling average in 2009.

VLSI has also downgraded IC sales forecast for 2009 from a 10% decline to a 13% decline. The continued deterioration in end-demand is the primary cause of the downward revision.

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