Industry news

Semiconductor market to decline, says Gartner

Worldwide semiconductor capital equipment spending will decline by nearly one-quarter (22 per cent) this year, one market analyst claims.

Gartner is forecasting continued economic uncertainty, combined with weakness in memory markets, will cause spending in the sector to drop to $49.2 billion £25 billion) in 2008.

The numbers paint a worsening picture than the analyst's April forecast of a 19.8 per cent drop for the market.

Klaus Rinnen, managing vice president for the firm's semiconductor manufacturing group, said the next six to 12 months will be another period of uncertainty and risks for the market.

"The bursting of the DRAM spending bubble should come as a surprise to no one; the fact that it coincides with downward economic pressures and the uncertain impact on semiconductor demand adds significant risk to an already grim forecast," he added.

A statement by the analyst added that all sector of semiconductor capital equipment spending are on pace for double-digit declines this year.

Gartner forecasted earlier in the week that more than half of IT users will become dissatisfied with the sectors growth in five years time.