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Semiconductor capital spending to increase 2.5 per cent in 2015

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indexWorldwide semiconductor capital spending is expected to grow 2.5 per cent in 2015, to US$ 66.1 billion, according to IT research and advisory company, Gartner.

Bob Johnson, research vice president, Gartner, said, “Since the previous quarter’s forecast, continued weakness in the Euro and Yen have created major weaknesses in the overall equipment market picture. With over half of all equipment being produced by either Japanese or European suppliers, the weakness in their currencies has been the primary factor in our reducing our overall outlook for 2015. Longer term, we expect modest growth throughout the semiconductor cycle, with just a pause in the equipment market’s growth expected in 2016, as DRAM goes through a typical cyclical downturn.”

According to Gartner’s research, foundries will continue to outspend the logic integrated device manufacturers (IDMs) in 2015. Worldwide foundry spending is forecast to increase 17.2 per cent, in contrast with the 1.4 per cent decline in total logic spending. The longer-term outlook for total logic spending is strong, as predicted mobility market saturation will dampen the need for new capacity and create an environment where existing capacity is upgraded to the latest node.

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The reduction from the previous forecast is a result of spending announcements by major manufacturers, which were lower than previously anticipated, and reflected the fact that major equipment types are cheaper due to weaknesses in exchange rates.

Gartner has introduced this research to provide a complete view of the entire semiconductor industry. The company has identified comprehensive data, and done a market survey on the manufacturing industry and on application market trends.

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