Join        Login             Stock Quote

Wafer Fab Equipment Spending Drop To Continue Till 2013

 December 18, 2012 03:03 PM

(By Balachander) Global wafer fab equipment (WFE) spending is expected to decline 17.4 percent this year and 9.7 percent in 2013, according to market research firm Gartner Inc.

Gartner projects the market to return to growth in 2014.

The firm forecasts worldwide wafer fab equipment spending to total $29.9 billion this year and $27 billion in 2013.

Gartner said that the outlook for semiconductor equipment markets has softened due to macroeconomic weakness and that capital investment is expected to remain flat over the forecast period as memory and logic segments invest countercyclically to each other.

"Demand for new equipment for logic production will soften as yields improve, leading to declining shipment volumes as the industry heads into 2013," Gartner said.

[Related -Emerging-Markets Stocks Took The Lead Last Week]

Gartner projects that wafer fab manufacturing capacity utilization will drop below 80 percent by the end of 2012 before slowly increasing to about 85 percent by the end of 2013. Memory will continue to be weak through 2013.

"High inventories, combined with overall market weakness, will continue to depress utilization rates into the first half of 2013," said Bob Johnson, research vice president at Gartner.

Johnson expects utilization rates to start climbing upward in the second quarter of 2013, as demand for chip production returns and capital spending restraints in the second half of 2012 and first half of 2013 slow new capacity additions.

Gartner now expects capital spending to decline 10.7 percent this year, sharper than a 9.3 percent drop projected earlier. Capital spending is expected to drop an additional 14.7 percent in 2013 as semiconductor manufacturers deal with excess capacity and a slow macroeconomy.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.