Industry news
Semiconductor equipment spending set to plummet
Worldwide spending on semiconductor capital equipment could decline by as much as 19.8 per cent to reach a total of $47.5 billion in 2008, according to a new report by Gartner.
Worldwide wafer fab equipment spending is expected to decline by 17.4 per cent in 2008, while the global automated test equipment market decreased by 14 per cent in 2007. Gartner predicts improved market conditions beginning in the middle quarters this year.
Klaus Rinnin, managing vice president for Gartner's semiconductor manufacturing group, said: "The memory market peaked last year by spending over 57 per cent of total revenue for capital expansion, a level which cannot be supported by the anticipated lacklustre revenue growth.
"We expect this to drop significantly to the low 40 per cent range for this year and 2009," he added.
Analysts from the research firm also said that improved market conditions would begin in the middle quarters of this year, with increased orders for memory testers beginning by late in the second quarter and early in the third quarter of this year, according to Computing SA. 