Business Soaring fab equipment sales next year.

Business Soaring fab equipment sales next year.

2013/07/09

Semiconductor manufacturing equipment sales will soar 21% to $43.98 billion in 2014 from $36.29 billion this year, says SEMI.

Following two years of conservative capital investments by major chip manufacturers, the new drivers for equipment spending are significant NAND flash fab investments by Samsung in China and Toshiba/Sandisk in Japan, and investments by Intel, including its fabs in Ireland.

Most major regions of the world will see significant equipment spending increases.

Front-end wafer processing equipment will grow 24 percent in 2014 to $35.59 billion, up from $28.70 billion in 2013.

Test equipment and assembly and packaging equipment will also experience growth next year, rising to $3.18 billion (+6 percent) and $2.9 billion (+14 percent), respectively.
“To meet the pent-up demand for capacity, particularly for leading-edge devices, we expect capital spending to increase throughout the remainder of this year and continue through 2014 — to post one of the highest rates of global investment for semiconductor manufacturing ever,” says Danny McGuirk, CEO of SEMI.

Growth is forecasted in China (82 percent), Europe (79 percent), South Korea (31 percent), Japan (32 percent), North America (9 percent), and Taiwan (2 percent). Taiwan will continue to be the world’s largest spender with $10.62 billion estimated for 2014, followed by North America at $8.75 billion and Korea with $8.74 billion.

2014 is expected to be the biggest spending year ever after the $47.7 billion spend in 2000.

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