Semiconductor equipment sales to improve
"The upturn has started," noted Dr. Robert Castellano, president of The Information Network. "We also raised our equipment forecast for 2009 to 5% growth. That's the good news. The bad news is that we lowered our forecasted growth for 2008 from a 22% increase to 11%."
The eroding housing market, falling dollar, credit crisis, high oil prices, and fears of a recession contributed to the change in forecast. However, The Information Network maintains its forecast made in late 2006 for a nearly 4% drop in 2007 revenues.
Falling DRAM prices have been a major drag on the semiconductor market and Capex spending for 2007. The Information Network anticipates that the sector will recover by mid 2008. A significant factor in the 11% growth forecast for the equipment market was Samsung's statement of a planned 25% increase in capital spending for 2008, a strategy to maintain market share leadership.
