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VLSI Research up semiconductor equipment spending and IC forecast

19 January 2011 | By Mark Osborne | News > Fab Management

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Applied Materials Endura platformBuoyed by Intel and Globalfoundries aggressive capital spending spree this year, VLSI Research has raised its forecast for equipment sales in 2011. Equipment sales are forecasted to grow 16% to US$55 billion, while CapEx could rise by 19%, should TSMC and second tier DRAM producers increase spending this year.

According to the research firm, IC manufacturers are buoyed by an improving macroeconomic environment and a strong holiday season, making then more confident about their prospects for 2011.

The dramatic shift between laptops and tablet’s, is pushing demand for NAND flash memory, while DRAM demand wanes. A shortage of NAND could see increased spending on capacity expansions.

Citing, strong momentum across the electronic food chain, prompted VLSI Research to also raise its IC sales forecast. IC sales are projected to increase 8.1%, up from its previous forecast of 4.4% for 2011.

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