Despite strong growth of 12.9% in 2014, worldwide semiconductor capital spending is projected to only grow 0.8% in 2015 to $65.7 billion, according to Gartner. Capital equipment spending will increase 5.6% in 2015, down from 11.3% in the Q3/14 forecast, as the largest spenders adopt conservative investment strategies.

“Equipment spending outperformed capital spending in 2014 and will continue to do so in 2015, a situation that will reverse in 2016. Total capital spending will grow 0.8% in 2015, compared with 8.8% in our previous forecast,” said Bob Johnson, research vice president at Gartner. “As we get better visibility into individual company spending plans for 2015, it is apparent that caution is a prevailing sentiment, with the exception of memory where manufacturers are adding capacity in response to favorable market conditions.”

In 2015, equipment spending will increase 5.6%, as manufacturers pull back on new fab construction and concentrate instead on ramping up new capacity. This equipment growth is down from Gartner’s previous forecast of 11.3%.

To view the full Gartner report, click here.