News Article
Semiconductor capex to fall less than expected in 2005
Worldwide semiconductor industry capital spending will fall by 5% in 2005, according to market analyst. IC Insights. This compares with a 10% reduction the company was predicting in January.
Worldwide semiconductor industry capital spending will fall by 5% in 2005, according to market analyst. IC Insights. This compares with a 10% reduction the company was predicting in January.
The company has also updated its forecast for 2006 capital spending. It now thinks worldwide semiconductor capex will drop by 7% in 2006 rather than by just 1%.
IC Insights Bill McLean said: "Although industry cycles have historically wreaked havoc on semiconductor producers, the semiconductor equipment suppliers have been whipsawed even more.
"Total semiconductor industry capital expenditures have typically been unable to display a "soft landing."
He also said that, because of the momentum in semiconductor capital spending and capacity that is typically carried over from the peak spending year (2004), spending in the second year after the peak (2006) is usually weaker than the first year after the peak (2005).
The company has also updated its forecast for 2006 capital spending. It now thinks worldwide semiconductor capex will drop by 7% in 2006 rather than by just 1%.
IC Insights Bill McLean said: "Although industry cycles have historically wreaked havoc on semiconductor producers, the semiconductor equipment suppliers have been whipsawed even more.
"Total semiconductor industry capital expenditures have typically been unable to display a "soft landing."
He also said that, because of the momentum in semiconductor capital spending and capacity that is typically carried over from the peak spending year (2004), spending in the second year after the peak (2006) is usually weaker than the first year after the peak (2005).
