Fab spending to decline in 19, but return to plenty in 20
The 2019 downturn marks the end of a three-year run of growth for fab equipment spending and has been prompted by a slowdown in the memory sector, SEMI said.
Across 2017 and 2018 equipment for memory fabs accounted for 55 percent of all spending. That figure is expected to drop to 45 percent in 2019 and then rebound again to 55 percent in 2020, SEMI said.
The slowdown in spending for memory fabs started in 2H18 and will continue in the 1H19. Despite a forecast comeback in the second half of 2019, SEMI sees a 30 percent plunge in overall memory spending for the year after reaching record highs in 2018.
Foundry is the second largest sector after memory and typically fluctuate less than memory spending. Its annual share has been running at 25 to 30 percent of the market and this is expected to hold steady in 2019 and 2020. This puts foundry roughly in line with the overall market.
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