Semiconductor Equipment Companies Expect Equipment Sales to Top US$50 Billion


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Semiconductor Equipment Companies Expect Equipment Sales to Top US$50 Billion by 2009

SEMI Announces Year-end Consensus Forecast for Chip Equipment Industry

CHIBA, Japan – December 4, 2006 –The leading manufacturers of semiconductor equipment project 2006 sales to reach $40.64 billion according to the year-end edition of the SEMI Capital Equipment Consensus Forecast, released here today by SEMI at the annual SEMICON Japan exposition.

The forecast indicates that, following a 12 percent market decline in 2005, the equipment market will grow 24 percent in 2006. Survey respondents see the market growing at a single-digit rate in 2007, double digits in 2008 and then back to single digits to reach $50.42 billion in 2009.

“For most of the past year, our industry has experienced a significant increase in demand for semiconductor devices, as well as strong economic conditions," said SEMI President and CEO Stanley T. Myers. "SEMI members have experienced strong overall sales of chip manufacturing equipment in 2006, and anticipate a 50 billion dollar market within the next three years.”

Wafer processing equipment, the largest product segment by dollar value, is expected to grow over 26 percent in 2006 to $28.84 billion. Survey respondents anticipate that the market for assembly and packaging equipment will expand 13 percent to $2.40 billion in 2006. The market for equipment to test semiconductors is expected to increase by about 22 percent to $6.45 billion this year.

The Japanese market, which is projected to grow 11 percent this year, remains the largest market region for worldwide equipment sales with $9.11 billion of new equipment sold into the region in 2006.

South Korea continues its expansion in 2006, with projected growth of 20 percent. Sales of new equipment in China and the Rest-of-World market regions will grow 80 percent and 31 percent respectively.

The SEMI Year-End Consensus Forecast is based on interviews conducted between late October and November 2005 with companies representing a majority of the total sales volume for the global semiconductor equipment industry.

The following survey 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

 

2005 Actual

2006

% Chng

2007

% Chng

2008

% Chng

2009

% Chng

Equipment Type

$B

$B

 

$B

 

$B

 

$B

 

Wafer Processing

$22.86

$28.84

26.2%

$30.00

4.0%

$34.10

13.6%

$35.76

4.9%

Assembly &
Packaging

2.13

2.40

12.9%

2.51

4.4%

2.88

14.7%

3.01

4.5%

Test

5.29

6.45

22.1%

6.59

2.1%

7.47

13.5%

8.02

7.3%

Other

2.61

2.94

12.6%

3.04

3.4%

3.32

9.1%

3.54

6.7%

Total Equipment*

$32.88

$40.64

23.6%

$42.14

3.7%

$47.77

13.3%

$50.32

5.4%

Forecast by Region

 

2005 Actual

2006

% Chng

2007

% Chng

2008

% Chng

2009

% Chng

Market Region

$B

$B

 

$B

 

$B

 

$B

 

North America

$5.70

$7.83

37.2%

$8.11

3.6%

$8.54

5.3%

$8.83

3.4%

Japan

8.18

9.11

11.3%

9.63

5.7%

10.77

11.9%

11.25

4.4%

Taiwan

5.72

6.91

20.8%

7.03

1.7%

8.70

23.7%

9.44

8.6%

Europe

3.26

3.66

12.1%

3.76

2.9%

3.92

4.4%

4.08

4.1%

South Korea

5.83

6.98

19.9%

7.19

2.9%

8.16

13.6%

8.50

4.1%

China

1.33

2.39

80.4%

2.42

1.0%

2.97

22.8%

3.23

8.7%

Rest of World

2.86

3.76

31.3%

4.01

6.8%

4.70

17.2%

5.00

6.3%

Total Equipment*

$32.88

$40.64

23.6%

$42.14

3.7%

$47.77

13.3%

$50.32

5.4%

*Totals and percentages may differ due to rounding of numbers

SEMI is a global industry association serving companies that provide equipment, materials and services used to manufacture semiconductors, displays, nano-scaled structures, micro-electromechanical systems (MEMS) and related technologies. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose (Calif.), 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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