Semiconductor Equipment Companies Expect Sales of $40.9 Billion in 2007


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SEMI Announces Mid-year Consensus Forecast for Chip Equipment Industry

Semiconductor Equipment Companies Expect Sales of $40.9 Billion in 2007

SAN FRANCISCO, Calif. – July 16, 2007 -- The leading manufacturers of semiconductor equipment expect 2007 to be the second largest year ever for sales of new semiconductor equipment according to the mid-year edition of the SEMI Capital Equipment Consensus Forecast, released here today by SEMI at the annual SEMICON West exposition.

The forecast indicates that, following a very strong year 23 percent in 2006, the equipment market will grow one percent to $40.9 billion in 2007. Survey respondents see about seven percent growth in 2008, and about four percent growth the following year to reach $45.5 billion in 2009.

"Semiconductor equipment suppliers saw strong sales surpassing $40 billion last year and expect to reach similar sales levels this year, driven by continued investment in 300 mm technology and growing investment in 45 nm tools," said Stanley T. Myers, president and CEO of SEMI.

The SEMI Mid-Year Consensus Forecast indicates that the wafer processing equipment segment will experience the most significant level of growth this year at an estimated four percent to $29.8 billion. Survey respondents anticipate that the market for assembly and packaging equipment will remain flat at $2.5 billion in 2007. The market for equipment to test semiconductors is expected to decline about eight percent to $5.9 billion this year.

The market in Taiwan for new equipment leads the growth trend in 2007, with a projected market increase of greater than 20 percent, followed by China (about 15 percent growth), Korea (one percent growth). Japan is expected to remain flat, while North America and Europe expect declines of about nine percent, and the rest of world expects a decline of about 14 percent.

The SEMI Mid-Year Consensus Forecast is based on interviews conducted between late May and June 2007 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

 

2006 Actual

2007

% Chng

2008

% Chng

2009

% Chng

2010

% Chng

Equipment Type

$B

$B

 

$B

 

$B

 

$B

 

Wafer Processing

$28.74

$29.75

3.5%

$31.18

4.8%

$32.97

5.8%

$35.21

6.8%

Assembly & Packaging

2.46

2.46

0.0%

2.70

9.8%

2.76

1.9%

2.92

5.9%

Test

6.42

5.92

-7.8%

6.88

16.2%

6.87

-0.1%

7.28

6.0%

Other

2.85

2.78

-2.6%

2.83

1.7%

2.92

3.2%

3.10

6.3%

Total Equipment*

$40.47

$40.91

1.1%

$43.58

6.5%

$45.51

4.4%

$48.51

6.6%

Forecast by Region

 

2006 Actual

2007

% Chng

2008

% Chng

2009

% Chng

2010

% Chng

Market Region

$B

$B

 

$B

 

$B

 

$B

 

North America

$7.32

$6.68

-8.8%

$6.99

4.7%

$7.05

0.8%

$7.31

3.7%

Japan

9.21

9.23

0.2%

9.65

4.5%

9.89

2.5%

10.55

6.6%

Taiwan

7.31

8.80

20.4%

9.54

8.5%

9.89

3.6%

10.70

8.3%

Europe

3.59

3.28

-8.7%

3.52

7.2%

3.52

0.0%

3.69

4.9%

South Korea

7.01

7.07

0.8%

7.57

7.1%

7.76

2.5%

8.17

5.3%

China

2.31

2.65

14.5%

2.56

-3.4%

3.48

35.9%

3.95

13.4%

Rest of World

3.71

3.20

-13.8%

3.75

17.3%

3.92

4.5%

4.14

5.5%

Total Equipment*

$40.47

$40.91

1.1%

$43.58

6.5%

$45.51

4.4%

$48.51

6.6%

*Totals and percentages may differ due to rounding of numbers

SEMI is a global industry association serving companies that develop and provide manufacturing technology, materials and services to make semiconductors, flat panel displays (FPDs), micro-electromechanical systems (MEMS) and related microelectronics. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose (Calif.), Seoul, Singapore, Tokyo, Shanghai and Washington, D.C. For more information, visit SEMI at www.semi.org.

ASSOCIATION CONTACT:

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

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