Mid-year Consensus Forecast for Chip Equipment Industry Announced


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SEMI Announces Mid-year Consensus Forecast for Chip Equipment Industry

Expect Semiconductor Equipment Sales of $14.14 Billion in 2009

SAN FRANCISCO, Calif. – July 14, 2009 – SEMI projects 2009 semiconductor equipment sales to reach $14.14 billion according to the mid-year edition of the SEMI Capital Equipment Forecast, released here today by SEMI at the annual SEMICON West exposition.

The forecast indicates that, following a 31 percent market decline in 2008, the equipment market will decline another 52 percent in 2009, but will experience a rebound with annual growth of about 47 percent in 2010.

"Spending on semiconductor manufacturing equipment this year will reach low levels experienced 15 years or so ago," said Stanley T. Myers, president and CEO of SEMI. "Forecasting has never been more challenging, though we expect 2010 spending to show double-digit improvement off of extremely low levels in 2009.”

Wafer processing equipment, the largest product segment by dollar value, is expected to decline 53 percent in 2009 to $10.42 billion. The forecast predicts that the market for assembly and packaging equipment will decline by 53 percent to $958 million in 2009. The market for semiconductor test equipment is forecasted to decline by about 48 percent to $1.78 billion this year.

Growth is anticipated to be negative in all regions in 2009 with the North American market claiming the number one spot from Japan. Japan will fall to the number two spot, followed by Taiwan. The South Korea market is expected to contract 62 percent, resulting in the fourth largest market for new equipment.

The following results are given in terms of market size in billions of U.S. dollars and percentage growth over the prior year:

Forecast by Equipment Segment

Equipment Type

       
 

2008

2009 Forecast

% Chng

2010 Forecast

% Chng

Wafer Processing

$22.03

$10.42

-53%

$15.42

48%

Test

3.45

1.78

-49%

2.54

43%

Assembly & Packaging

2.04

0.96

-53%

1.34

40%

Other*

2.00

0.99

-50%

1.43

44%

Total

$29.52

$14.14

-52%

$20.74

47%

Forecast by Region

 

2008

2009 Forecast

% Chng

2010 Forecast

% Chng

North America

$5.63

$3.56

-37%

$4.30

21%

Japan

7.04

2.96

-58%

4.32

46%

Taiwan

5.01

2.37

-53%

3.56

50%

Europe

2.45

1.40

-43%

1.77

27%

South Korea

4.89

1.88

-62%

3.59

91%

China

1.89

0.78

-59%

1.59

103%

Rest of World

2.61

1.19

-54%

1.61

35%

Total

$29.52

$14.14

-52%

$20.74

47%

*Totals and percentages may differ due to rounding of numbers

SEMI is the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries. SEMI member companies are the engine of the future, enabling smarter, faster and more economical products that improve our lives. Since 1970, SEMI has been committed to helping members grow more profitably, create new markets and meet common industry challenges. SEMI maintains offices in Austin, Bangalore, Beijing, Brussels, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C. For more information, visit www.semi.org.

ASSOCIATION CONTACT:
Scott Smith/SEMI
Tel: 1.408.943.7957
E-mail: ssmith@semi.org

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