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Worldwide semiconductor capital spending to grow 47.3%
Press Trust of India / Bangalore Sep 11, 2009, 16:11 IST

Semiconductor capital equipment spending worldwide will grow 47.3 per cent in the second half of 2009, but the market is projected to decline 47.9 per cent this year, according to IT research and advisory firm Gartner Inc.

The spending on worldwide semiconductor capital equipment will rebound in 2010 when revenue is forecast to increase 34.3 per cent. All segments of the market are expected to grow in 2010, the company said in a statement.

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Wafer Fab Equipment (WFE) spending worldwide is expected to decrease 48.8 per cent in 2009. For 2010, the most likely scenario is WFE spending increasing to 38.3 per cent, paralleling anticipated growth in capital spending.

Packaging and Assembly Equipment (PAE) spending is forecast to decrease 43.1 per cent in 2009, then increase 40.5 per cent in 2010. Recovery for PAE began in the second quarter of this year as the market bounced off its sharp correction in the fourth quarter of 2008 through the first quarter of 2009, Gartner said.

For 2009, Automated Test Equipment (ATE) is on its way to decline 36.5 per cent. After falling substantially for several quarters, the ATE market recovered in the second quarter of this year. Growth is expected to continue over the next several quarters as device demand improves.

"Equipment purchase for the remainder of 2009 and the first half of 2010 will be mostly technology buys, as memory companies get ready for copper implementation, and double patterning for critical geometries in the 5X nm and 4X nm generations," said Gartner Research Vice-President Dean Freeman.

"Capacity will begin to ramp in the second half of 2010 as businesses and consumers begin to open up their pocket books to purchase electronic goods and more consistent semiconductor growth should be occurring worldwide", he said.

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