Global Semicon Manufacturing Equipment Spending declines by 11.6% in 2012

Worldwide semiconductor manufacturing equipment spending would decline by 11.6 per cent is projected to total $38.9 billion in 2012, an 11.6 per cent decline from 2011 spending of $44 billion. But it is anticipated to revive in 2013, said a report by Gartner.

Worldwide semiconductor capital spending is forecast to total $60.9 billion in 2012, down 7.3 per cent from 2011 spending of $65.8 billion in 2011.

Although it declines this year, the spending is expected to rise to double-digit growth in 2013 when spending is projected to total $43 billion, a 10.5 percent increase from 2012, forecasted the reported. Capital spending is expected to grow 3.5 percent in 2013.

The wafer fab equipment (WFE) market closed out 2011 with spending up 13.3 percent, based on strong momentum in the first half, however, WFE spending is forecast to decrease 12.7 percent. WFE spending in 2012 will primarily be on leading-edge technology, as the 20mm and 28/32 nm ramp up.

Gartner analysts said wafer fab manufacturing capacity utilization will decline into the low-80 percent range by the middle of 2012, before slowly increasing to about 90 percent by the end of 2012. Leading-edge utilization will return to the low 90 percent range by the second half of 2012, providing for a positive capital investment environment.

Back-end equipment markets (which include wafer-level packaging and assembly equipment, die-level packaging and assembly equipment, and automated test equipment (ATE)) would see a modest decline in 2012, but it will be followed by growth and sales of more than $.95 billion in 2013.