semiconductors

Vacuum pumps, pressure gauges, and vacuum valves combined make up the biggest expense on the bill of materials for semiconductor OEMs. The semiconductor industry consumed almost $2.7 billion worth of vacuum subsystems in 2020, with over 60% supplied by vendors based in Europe.

The current world news is awash with stories about this current economic downturn including speculations about its probable depth and duration. Questions loom regarding what it will take to restart the world economies and how to accomplish this restart effectively.

Global fab equipment spending promises to crawl out of a gloomy 2019 and see a modest recovery this year before a sharp uptick drives record investments in 2021 in a vivid display of the decades-old cyclicality playing out in the semiconductor industry.

Compared to the first half of 2019, the second half smacks of a recovery, with fab equipment spending revised upward to show a stronger 2019 overall in the latest update of the World Fab Forecast report, published by SEMI.

The global electronics industry normally experiences a seasonal upturn from mid-summer through the December holidays. However, this autumn’s upturn is less robust.

For the semiconductor industry, 2018 was nothing if not incredible. Chip revenue shot up to $469 billion, trouncing the record-setting $412 billion reached in 2017 to reach a new high. Both semiconductor equipment and materials hit record revenues of $65 billion and $52 billion, respectively.

Custer Consulting Group has its first estimate of global electronic equipment growth in 4Q’18 vs. 4Q’17.

The December 2018 edition of the World Fab Forecast Report published by SEMI reveals a downward revision of total fab equipment spending growth for 2018 to 10% from the 14% forecast in August. Spending in 2019 is now projected to drop 8%, a reversal from the previously expected increase of 7%.

Electronic equipment shipments are approaching their seasonal peak for this year. Oct '18 was up 8.4% compared to Oct '17 but only up 0.4% sequentially from Sept '18. As the consumer-driven busy season winds down, electronic equipment and component monthly sales will decline until late next spring.

Global fab equipment spending will increase 14% this year to US$62.8B and is expected to rise 7.5%, to US$67.5B in 2019, marking the highest investment year for fab equipment in the history of the industry, according to SEMI's latest World Fab Forecast Report.