Jul 13 2007
Our leading indicators are pointing to a moderate economic expansion that will continue over the next 18 months, including a reacceleration of growth in the U.S. A stronger global economy should swing the semiconductor equipment market into positive territory for 2008, according to the report “The Global Market for Equipment and Materials for IC Manufacturing,” recently published by The Information Network, a New Tripoli, PA-based market research company.
2007 will be a down year for the semiconductor equipment market, dropping 2.3% from inflated 2006 revenues.
“2007 will be another year of ‘robbing Peter to pay Paul’”, noted Dr. Robert Castellano, president of The Information Network. “For the third time this decade, too much money was spent by chip manufacturers to meet their production needs and the excess capacity is carrying into 2007 as all that excess equipment is up and running in the fabs. We’re clearly seeing it in the memory market as ASPs fall from excess inventory.”
Growth in the lithography sector was reduced to 5.8%, as memory companies can’t justify spending $35 million for a wet DUV tool when they are struggling with sharp price declines and excess capacity. We expect lithography tool manufacturers to announce pushouts in purchases in upcoming quarterly financial announcements.
The semiconductor market will also rebound from 1.9% growth in 2007 to 10.4% growth in 2008. Coupled with a stronger global economy and higher selling prices of memory chips, semiconductor manufactures will purchase additional equipment to the tune of 22% growth in 2008.