Samsung spending surge to boost semiconductor market

Gartner predicts global semiconductor capital spending to rise by 11.4 per cent year on year

Worldwide semiconductor capital spending is projected to rise by 11.4 per cent from 2013, thanks to Samsung's plans to increase its spending in the market to $14bn (£8.76bn).

According to Gartner's latest research, global semiconductor capital spending will reach $64.5bn in 2014, a rise from $57.8bn in 2013.

David Christensen, senior research analyst at Gartner, said: "While capital spending outperformed equipment spending in 2013, the reverse will hold true for 2014.

"Total capital spending will grow 11.4 per cent in 2014, compared with 7.1 per cent in our prior forecast. [This is] a result of Samsung increasing its announced spending plans to $14bn.

"Equipment spending will increase 17.1 per cent, as manufacturers... concentrate on ramping up new capacity instead," Christensen said.

Gartner expects this growth rate to continue, with semiconductor capital spending to reach $74.3bn by 2018.

The report also stated that industry consolidation will continue thanks to equipment advances leading to higher development costs.