Semiconductor Industry witnesses Shift in Capacity Equipment and Spending Trends, Says SEMI

Published By : 15 Jan 2014 | Published By : QYRESEARCH

According to SEMI, the trend in spending more money to upgrade the already existing facilities and electronic equipment is higher than the trend of investing in new additions. The new additions occur at a slower pace. 

Today, spending trends in the semiconductor industry has changed. Earlier, in 2009, the capacity of expansion corresponded to the equipment spending, however, now the times have all changed.  

SEMI added that the 2013 installed capacity growth aped the economic crisis trend that supported the data improvement during the 2014 and 2015 capacity expansion. 

In the five years of duration between the 2003 and 2007, the annual growth rate of the new capacity expansion had increased from 6% as recorded in 2003 to 20% growth in 2007. These figures had almost doubled the fab capacity in the five years of duration, according to SEMI’s observation. The events were mainly driven by the NAND and DRAM companies in Korea, China, and Taiwan. 

However, this condition was before the 2009 crisis. After 2009, new capacity additions trended below pre-2009 growth rates. The growth of new capacity fell from 7% (2010) to about 4% (2014). There were only 17% of new capacity addition seen in the five years, indicated SEMI. 

Since then it has been observed by the SEMI that the costs levied on upgrading the existing equipment have grown sharply. The expansion projects namely new fabs accounts for the majority of the fab equipment spending, but in lesser proportions. 

On the other hand, the dedicated foundries increased at a steady growth of 10% in 2013 and will add another 8-10% in 2014. 

NAND which lost about 4% of capacity in 2012, increased by 10% in 2013, and will add another 5-8% in 2014. 

DRAM on the flip side does not expect new capacity in 2013 and 2014, while MPU may add up some new capacity by 2014, said SEMI.
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