SEMI Announces Mid-year Consensus Forecast for Chip Equipment Industry


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SEMI Announces Mid-year Consensus Forecast for Chip Equipment Industry

Expect Semiconductor Equipment Sales of $34.12 Billion in 2008

SAN FRANCISCO, CALIF. – July 14, 2008 – SEMI projects 2008 semiconductor equipment sales to reach $34.12 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 six percent market growth in 2007, the equipment market will decline 20 percent in 2008, but will experience a rebound with annual growth of 13 percent and six percent in 2009 and 2010, respectively.

“We began to see equipment spending declines during the second half of 2007, driven by lower spending in the memory sector and a less than favorable device pricing environment," said Stanley T. Myers, president and CEO of SEMI. "However, expectations for 2009 are leaning toward a solid industry recovery and subsequent growth in the low double digits.”

Wafer processing equipment, the largest product segment by dollar value, is expected to contract 21 percent in 2008 to $25.4 billion. The forecast predicts that the market for assembly and packaging equipment will decline by 14 percent to $2.44 billion in 2008. The market for semiconductor test equipment is forecasted to decline by 20 percent to $4.04 billion this year.

Growth is anticipated to be negative in all regions, except China, where equipment sales are projected to increase one percent over 2007. The new equipment market in China is expected to surpass both the European and Rest of the World markets this year.

The Japanese market is projected to reclaim the number one spot from Taiwan, as the result of significant capital expenditure cutbacks in Taiwan this year. Taiwan is expected to fall back to the number two spot, followed by South Korea. The North American market is expected to contract 13 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

           
 

2007

2008 Forecast

% Chng

2009 Forecast

% Chng

2010 Forecast

% Chng

Wafer Processing

$31.95

$25.41

-20%

$29.11

15%

$30.89

6%

Test

5.06

$4.04

-20%

$4.42

9%

$4.77

8%

Assembly & Packaging

2.84

$2.44

-14%

$2.70

11%

$2.89

7%

Other*

2.92

$2.23

-23%

$2.40

7%

$2.49

4%

Total

$42.77

$34.12

-20%

$38.62

13%

$41.04

6%

Forecast by Region

 

2007

2008 Forecast

% Chng

2009 Forecast

% Chng

2010 Forecast

% Chng

North America

$6.55

$5.67

-13%

$4.42

-22%

$4.35

-2%

Japan

9.31

7.88

-15%

8.17

4%

8.52

4%

Taiwan

10.65

6.75

-37%

10.32

53%

10.84

5%

Europe

2.94

2.53

-14%

2.62

4%

2.73

4%

South Korea

7.35

6.02

-18%

6.38

6%

7.02

10%

China

2.92

2.95

1%

3.64

24%

4.04

11%

Rest of World

3.05

2.33

-23%

3.06

31%

3.54

16%

Total

$42.77

$34.12

-20%

$38.62

13%

$41.04

6%

*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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