Gartner Predicts Semiconductor Capital Spending Decline in 2016

Worldwide semiconductor capital spending is projected to decline 4.7% in 2016 to $59.4 billion, according to Gartner. This is down from the 3.3% growth predicted in Gartner’s previous quarter’s forecast.

“The 2016 outlook for the semiconductor manufacturing equipment market reflects a bleaker outlook for end-user electronics demand and the world economic environment,” said David Christensen, senior research analyst at Gartner. “Capital investment policies of leading semiconductor vendors have remained cautious against the background of sluggish electronics demand. However, the long-term outlook shows a return to growth, although the wafer-level manufacturing equipment market is expected to enter a gentle down cycle in 2016 due to the loss of the supply and demand balance in the DRAM market.”

In 2016 spending on wafer-level manufacturing equipment is forecast to decline 2.4%. Within the forecast, different segments are expected to fare differently in response to varying end-market conditions. For example, the lithography segment will grow 1.4%, while the etch, clean and planarization equipment markets in 2016 are expected to decline by 2.9%.

The deposition equipment segment will improve slightly in 2016 with negative 3.2% growth. Beyond 2016, the market turns positive, with relatively strong growth forecast through 2018.

This research is produced by Gartner’s Semiconductor Manufacturing program. This research program, which is part of the overall semiconductor research group, provides a comprehensive view of the entire semiconductor industry, from manufacturing to device and application market trends.

Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.