Global semicon manufacturing spends to dip by 5.5 p.c. in 2013

BANGALORE, INDIA: Worldwide semiconductor manufacturing equipment spending is projected to total $35.8 billion in 2013, a 5.5 percent decline from 2012 spending of $37.8 billion, according to Gartner, Inc.

Gartner said that capital spending will decrease 3.5 percent in 2013, as major producers remain cautious in the face of market weakness.

"Weak semiconductor market conditions, which continued into the first quarter of 2013, generated downward pressure on new equipment purchases," said Bob Johnson, research vice president at Gartner.

"Looking beyond 2013, we expect that the current economic malaise will have worked its way through the industry and spending will follow a generally increasing pattern in all sectors throughout the rest of the forecast period," added Johnson.

Gartner predicts that 2014 semiconductor capital spending will increase 14.2 percent, followed by 10.1 percent growth in 2015. The next cyclical decline will be a mild drop of 3.5 percent in 2016, followed by a return to growth in 2017.

Although capital spending for all products will decline in 2013, Gartner claimed that logic spending will be the strongest segment, declining only 2 percent compared with a 3.5 percent decline for the total market. This is driven by aggressive investment of the few top players, which are ramping up production at the sub-30-nanometer (nm) nodes.

According to Gartner, Memory will continue to be weak through 2013, with maintenance-level investments for DRAM and a slightly down NAND market until supply and demand balance returns.

For 2014, Gartner sees capital expenditure (capex) returning to growth with an increase of 14.2 percent over 2013.

Gartner further added that the wafer fab equipment (WFE) market is seeing continuous quarter-over-quarter growth in 2013, as major manufacturers come out of a period of high inventories and a generally weak semiconductor market.

Looking beyond 2013, Gartner sees growth returning to the WFE market with double-digit growth in 2014 and 2015, before a modest cyclical downturn in 2016.