Geographically China and Korea have shown the biggest change. Estimates of equipment spending in China in 2019 have been revised from US$17 billion in August to US$12 billion.
SK Hynix is expected to slow DRAM expansion in 2019. GLOBALFOUNDRIES reconsidered its plan for the Chengdu fab, delaying the ramp. SMIC and UMC are slowing spending. The Fujian Jinhua DRAM project has been put on hold.
In August, SEMI forecast that Korea fab equipment spending would decline by 8 percent, to US$17 billion, in 2019 – a projection that has now been slashed to US$12 billion, a drop of 35 percent YoY.
However, Micron is one memory maker that is planning to increase its capex in FY19 – up about 28 percent to US$10.5 billion from US$8.2 billion in FY18.
Other sectors continue to show strength. (Figure 2).
Figure 2: Change rates for chipmaking equipment types by sector. Source: SEMI
Investment in manufacturing of optoelectronics – especially CMOS image sensors – is expected to increase 33 percent to US$3.8 billion in 2019. Microprocessors is expected to grow more than 40 percent in 2019 to US$4.8 billion. Analog and mixed signal investments – up 19 percent – in 2019. The foundry sector is expected to make total fab equipment investments of US$13 billion in 2019, a 10 percent rise.
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