Chip equipment spending to stay flat in 2016

July 14, 2016 // By Peter Clarke
The worldwide semiconductor manufacturing equipment market will be flat this year and will rebound in 2017 according to the SEMI trade association.

SEMI forecasts that the total semiconductor equipment market will grow 1 percent in 2016 to a value of $36.9 billion after contracting 3 percent in 2015. An increase of 11 percent is expected in 2017 for the market to reach $41.1 billion.

Spending growth in 2017 will be driven broadly by foundries; the need to tool up for 3D-NAND and DRAM production; by logic, power and investments in China, SEMI said.

Chipmaking equipment sales forecast for 2016 and 2017 by equipment type in $billions. Source: SEMI.

"After a tepid 2015, device manufacturers are beginning to ramp their investments in key industry segments," said Denny McGuirk, CEO of SEMI, in a statement. "We expect capital spending to improve for the remainder of 2016 and into 2017."

Chipmaking equipment sales forecast for 2016 and 2017 by region in $billions. Source: SEMI.

China is expected to move past Japan, Korea and North America to become the second largest purchaser of semiconductor manufacturing equipment in 2016. Taiwan will remain the number one region by a considerable margin despite a minor contraction in 2016.

SEMI expects that in 2017 Korea will take back second place as it spends on both memory and logic production equipment.