Worldwide Semiconductor Capital Spending Will Grow 10.2% in 2017

Worldwide Semiconductor Capital Spending Will Grow 10.2% in 2017

Foto: Shutterstock

Worldwide semiconductor capital spending is projected to increase 10.2 percent in 2017, to $77.7 billion, according to Gartner. This growth rate is up from the previous quarter's forecast of 1.4 percent, due to continued aggressive investment in memory and leading-edge logic which is driving spending in wafer-level equipment.

"Spending momentum is more concentrated in 2017 mainly due to strong manufacturing demand in memory and leading-edge logic. The NAND flash shortage was more pronounced in the first quarter of 2017 than the previous forecast, leading to over 20 percent growth of etch and chemical vapor deposition (CVD) segments in 2017 with a strong capacity ramp-up for 3D NAND," said Takashi Ogawa, research vice president at Gartner.

According to Gartner's latest view, the next cyclical down cycle will emerge in 2018 to 2019 in capital spending, compared with 2019 to 2020 in the previous quarter's forecast. "Spending on wafer fab equipment will follow a similar cycle with a peak in 2018. While the most likely scenario will still keep positive growth in 2018, there is a concern that the growth will turn negative if the end-user demand in key electronics applications is weaker than expected," said Ogawa.

Worldwide Semiconductor Capital Spending and Equipment Spending Forecast, 2016-2020
(Millions of Dollars)

 

2016

2017

2018

2019

2020

Semiconductor Capital Spending

 

70,568.9

 

77,794.5

 

77,443.5

 

71,814.8

 

73,239.5

Growth (%)

9.1

10.2

-0.5

-7.3

2.0

Wafer Fab Equipment, Including Wafer-Level Packaging

 

37,033.1

 

43,661.0

 

43,690.4

 

40,515.8

 

41,342.7

Growth (%)

11.4

17.9

0.1

-7.3

2.0

Other Semiconductor Capital Spending

 

33,535.8

 

34,133.5

 

33,753.2

 

31,299.0

 

31,896.8

Growth (%)

6.8

1.8

-1.1

-7.2

1.9

Source: Gartner

More from category

Self-Driving Vehicles Will Reach 50 Million by 2026

Self-Driving Vehicles Will Reach 50 Million by 2026

20 Jul 2018 comment

New findings from Juniper Research reveal that by the end of 2026 there will be over 50 million autonomous vehicles on the road, with over 10 million in the US and 15 million in the Far East and China.

European Spending on 3D Printing Will Grow to $7.4 Billion in 2022

European Spending on 3D Printing Will Grow to $7.4 Billion in 2022

20 Jul 2018 comment

European purchases of 3D printers, materials, software, and related services are expected to total $3.6 billion in 2017, according to IDC.

Chatbots Will Deliver Big Savings For Retail, Banking and Healthcare by 2023

Chatbots Will Deliver Big Savings For Retail, Banking and Healthcare by 2023

19 Jul 2018 comment

A new report from Juniper Research has found that the adoption of chatbots across the retail, banking and healthcare sectors will realise business cost savings of $11 billion annually by 2023.