Worldwide semiconductor capital spending to grow 10.2 per cent in 2017

August 8, 2017 3:37 pm


Worldwide semiconductor capital spending is projected to increase by 10.2 per cent in 2017 to reach $77.7 billion, according to leading market research firm Gartner, Inc.

This growth rate is up from the previous quarter’s forecast of 1.4 per cent, due to continued aggressive investment in memory and leading-edge logic which is driving spending in wafer-level equipment.

“Spending momentum is more concentrated in 2017 mainly due to strong manufacturing demand in memory and leading-edge logic. The NAND flash shortage was more pronounced in the first quarter of 2017 than the previous forecast, leading to more than 20 per cent growth of etch and chemical vapor deposition (CVD) segments in 2017 with a strong capacity ramp-up for 3D NAND,” said Takashi Ogawa, research vice president at Gartner.

Earlier down cycle

According to the new findings in a study produced by Gartner’s Semiconductor Manufacturing programme, the next cyclical down cycle will emerge in 2018 to 2019 in capital spending, compared with 2019 to 2020 in the previous quarter’s forecast.

“Spending on wafer fab equipment will follow a similar cycle with a peak in 2018. While the most likely scenario will still keep positive growth in 2018, there is a concern that the growth will turn negative if the end-user demand in key electronics applications is weaker than expected,” said Ogawa.

The forecast

Here is the Worldwide Semiconductor Capital Spending and Equipment Spending Forecast, 2016-2020 (Millions of Dollars)

Tags:

By AMEinfo Staff
AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.



AMEinfo EXPERTS