News Article
Wafer processing gained $2.39 billion in 2007
Weak Dollar contributed 8.3% to wafer processing equipment market in 2007 says the information network.
The wafer processing (front-end) equipment market gained $2.39 billion or 8.3% because of the weak dollar in 2007, according to the report “The Global Market for Equipment and Materials for IC Manufacturing,” recently published by The Information Network, a New Tripoli, PA-based market research company. The Japanese yen appreciated 6.5% against the U.S. dollar and the Euro gained 11.2% in 2007. Global sales by Japanese and European companies represented 38% and 12.5% of equipment sales, respectively, in 2007
“We had maintained that the 2007 market would be essentially flat in 2007, but it increased in U.S. dollars by 9.5%. If we deduct the 8.3% currency fluctuation increase, we were spot on in our forecast”, noted Dr. Robert Castellano, president of The Information Network.
There were several large foreign companies that contributed to the inflated 2007 growth. TEL, for example, grew 22% in its national currency (Yen) but 28.5% in dollars. Likewise, ASML grew 5% in Euro denominations but 16% in dollars.
“These are the number 2 and 3 companies in the industry, so their contribution is huge,” added Dr. Castellano. “For 2008 we see continued erosion in the dollar and a weak, recessionary economy in the U.S. We have reduced our forecast to a 14.5% decrease in the wafer processing equipment market.”