Gartner has predicted a slump in semiconductor manufacturer spend with no sign of recovery until 2010.
This is mainly due to a combination of an overspend on memory in the boom years for the sector and the continuing global financial crisis.
Global capital equipment spending for the semiconductor industry will total $16.9bn (£11.9bn) in 2009, a 45.2 per cent drop on 2008 spending of $30.8bn, according to the analyst. It predicts spending will rise 20.1 per cent in 2010 to $20.3bn.
Klaus Rinnen, managing vice president for Gartner’s semiconductor manufacturing group, said: “The world economic crisis has slowed capital spending in all segments of the semiconductor market.
“Overspending on memory in the past three years, plus a retrenching consumer market presents little potential for an upside until 2010.”
This includes a 46 per cent decline in wafer fab equipment spending, a 52 per cent drop in lithography spend and the packaging and assembly market will fall by 47 per cent.
Phil Pace, sales director at distributor Simms, said any decline in spend would affect the channel.
“We expect chip makers and vendors to reduce their capacity, which will affect the channel through pricing and possible supply shortages.”
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