Forecast: Semiconductor Equipment Sales to Reach $41.7 Billion in 2007


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Semiconductor Equipment Sales to Reach $41.7 Billion in 2007

SEMI Announces Year-end Consensus Forecast for Chip Equipment Industry

TOKYO, Japan – December 4, 2007 –The leading manufacturers of semiconductor equipment project 2007 sales to reach $41.68 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 23 percent market growth in 2006, the equipment market will grow three percent in 2007. Survey respondents expect the market to decline about two percent in 2008, and then post growth in the high single digits in 2009 and 2010 to reach $47.99 billion in 2010.

“Sales of semiconductor manufacturing, testing, assembly and packaging equipment are at levels slightly above last year, and will result in 2007 being the industry’s second strongest year on record," said Stanley T. Myers, president and CEO of SEMI. "SEMI members have continued to generate strong overall sales of chip manufacturing equipment, and expect to see a $48 billion dollar market by 2010.”

Wafer processing equipment, the largest product segment by dollar value, is expected to grow over six percent in 2007 to $30.61 billion. Survey respondents anticipate that the market for assembly and packaging equipment will expand by almost 11 percent to $2.72 billion in 2007. The market for equipment to test semiconductors is expected to decline by about 15 percent to $5.47 billion this year.

The Japanese market is projected to decline by about three percent, and moves behind Taiwan this year for only the second time ever.

South Korea continues its expansion in 2007, with projected growth of about five percent. Sales of new equipment in China will grow almost 24 percent, while the Rest-of-World market regions will decline by about 12 percent.

The SEMI Year-End Consensus Forecast is based on interviews conducted between late October and November 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

$30.61

6.5%

$29.12

-4.9%

$32.22

10.6%

$34.64

7.5%

Assembly &
Packaging

2.46

2.72

10.6%

2.88

5.6%

2.64

-8.2%

2.39

-9.4%

Test

6.42

5.47

-14.7%

5.91

8.0%

6.20

4.9%

6.74

8.6%

Other

2.85

2.87

0.6%

3.13

9.1%

3.59

14.6%

4.22

17.7%

Total Equipment*

$40.47

$41.68

3.0%

$41.05

-1.5%

$44.65

8.8%

$47.99

7.5%

Forecast by Region

 

2006 Actual

2007

% Chng

2008

% Chng

2009

% Chng

2010

% Chng

Market Region

$B

$B

 

$B

 

$B

 

$B

 

North America

$7.32

$6.67

-8.9%

$6.50

-2.6%

$6.98

7.4%

$7.46

6.9%

Japan

9.21

8.92

-3.1%

8.90

-0.3%

9.53

7.2%

10.42

9.3%

Taiwan

7.31

9.42

28.9%

8.77

-6.9%

9.93

13.2%

11.13

12.1%

Europe

3.59

3.18

-11.7%

3.24

2.0%

3.38

4.5%

3.49

3.1%

South Korea

7.01

7.38

5.2%

7.29

-1.2%

8.04

10.4%

8.67

7.9%

China

2.31

2.87

23.8%

2.73

-4.6%

2.99

9.4%

2.93

-1.9%

Rest of World

3.71

3.25

-12.4%

3.62

11.4%

3.79

4.8%

3.88

2.4%

Total Equipment*

$40.47

$41.68

3.0%

$41.05

-1.5%

$44.65

8.8%

$47.99

7.5%

*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, 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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