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Taiwan semiconductor capital spending fell 53% in 2008
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Exuberant semiconductor capital spending in Taiwan in 2007, which reached record levels as DRAM memory manufacturers built and equipped new 300mm fabs, dramatically reversed in 2008, showing a decline of 53% to US$5.01 billion, compared to US$10.65 billion in 2007.
Both China and South Korea also saw big declines in spending, down 35.3% and 33.5% respectively. Overall, spending was down 31% to US$29.52 billion in 2008, according to a new report from SEMI, covering equipment sales by region.
Japan spent the most on capital equipment in 2008, compared with all other regions. Spending reached US$7.04 billion, down from US$9.31 billion in 2007. North America market had US$5.63 billion in sales, the second largest market in 2008.
However, capital spending in North America, Europe and ROW are showing sequential declines since peaking in 2006.
The global wafer processing equipment market segment decreased 31%; the assembly and packaging segment decreased 28 percent, the total test equipment sales decreased 32 percent. ‘Other’ front end equipment sales declined by 32%, according to SEMI.
