News Article
Semiconductor Equipment Market Down Through 06?
The front-end semiconductor equipment market will drop sequentially over the next three quarters before starting an upward track in mid-2006 that will ultimately reach double-digit growth in 2007 and 2008, according to The Information Network market research company.
The front-end semiconductor equipment market will drop sequentially over the next three quarters before starting an upward track in mid-2006 that will ultimately reach double-digit growth in 2007 and 2008, according to The Information Network market research company.
Nevertheless, 2006 will still be a down year, dropping 3.0% following a 9.6% drop in 2005. We forecast a 15% drop in Q3 revenues year-over-year and another 19% drop in Q4. Sequentially, Q3 2005 over Q2 2005 will drop 2% while Q4 2005 over Q3 2005 will drop 13%.
Capacity utilization will rise through mid-2006 to 95% for all ICs and nearly 100% for ICs under 160 nm before the next wave of billings commences.
The front-end semiconductor market is geared to increase 23.5% in 2007 and 31.0% in 2008.
We forecast the Lithography sector leading the market by dropping only 1% in 2005 and growing 2.9% in 2006. Lagging the overall front-end market will be automation tools, as new fab construction has slowed in 2005.
“Our forecast for 2005, which we made in August 2004, has not changed at negative 9.5% and we took into consideration the excess equipment purchases in 2004, a slowdown in the semiconductor market from the 27-30% range in 2004 to the 5-7% in 2005, capacity utilization of tools, global economies, and apprehension on the part of semi manufacturers to spend money and precipitate another inventory glut problem,” noted Dr. Robert N. Castellano, President of The Information Network. “We see nothing in the past 12 months has affected our forecasts, that they remain on track and viable, and we reiterate them. As the downturn continues and equipment manufactures struggle to avoid red ink, we see a new wave of layoffs on the horizon.”
Nevertheless, 2006 will still be a down year, dropping 3.0% following a 9.6% drop in 2005. We forecast a 15% drop in Q3 revenues year-over-year and another 19% drop in Q4. Sequentially, Q3 2005 over Q2 2005 will drop 2% while Q4 2005 over Q3 2005 will drop 13%.
Capacity utilization will rise through mid-2006 to 95% for all ICs and nearly 100% for ICs under 160 nm before the next wave of billings commences.
The front-end semiconductor market is geared to increase 23.5% in 2007 and 31.0% in 2008.
We forecast the Lithography sector leading the market by dropping only 1% in 2005 and growing 2.9% in 2006. Lagging the overall front-end market will be automation tools, as new fab construction has slowed in 2005.
“Our forecast for 2005, which we made in August 2004, has not changed at negative 9.5% and we took into consideration the excess equipment purchases in 2004, a slowdown in the semiconductor market from the 27-30% range in 2004 to the 5-7% in 2005, capacity utilization of tools, global economies, and apprehension on the part of semi manufacturers to spend money and precipitate another inventory glut problem,” noted Dr. Robert N. Castellano, President of The Information Network. “We see nothing in the past 12 months has affected our forecasts, that they remain on track and viable, and we reiterate them. As the downturn continues and equipment manufactures struggle to avoid red ink, we see a new wave of layoffs on the horizon.”
