Feeds

Chip-making kit spend slumps

Surprise, surprise

  • alert
  • submit to reddit

High performance access to file storage

World+dog is cutting its spending on chip-making equipment. Taiwanese semiconductor companies, for example, will this year spend just over half of what they did in 2000.

TSMC has temporarily halted building work on a second 300mm wafer fab, Taiwan's Economic Times reports. UMC has decided not to build a 300mm wafer plant, either. Marconix has delayed a NT$30 billion investment programme by two years.

The problem is by no means restricted to Taiwan. Market watcher Gartner Dataquest reckons Asia Pacific companies will cut spending by 33 per cent, Japan by 24 per cent, North America by 22 per cent and Europe by 17 per cent.

Globally, sales of chip-making kit will fall 35 per cent on last year's figure of $47.7 billion, the Semiconductor Equipment and Materials International (SEMI) has reported based on a survey of 71 equipment makers.

That broadly matches Gartner Dataquest's numbers, which put spending on equipment at $27.9 billion this year, down 30 per cent on last year's $39.9 billion. Worldwide semiconductor capital spending is projected to be $47.3 billion in 2001, a fall of 26 per cent on last year.

Fab construction delays like those initiated by the Taiwanese chip makers will ensure any recovery for equipment makers will take place later rather than sooner. SEMI's survey suggests chip makers feel the market won't bottom out until the end of the year at the earliest, and probably not well into 2002.

SEMI predicts next year will see a modest, 11.6 per cent increase in sales, from this year's $31 billion to $34.6 billion, followed by 22.5 per cent growth in 2002, to $42.4 billion. Clearly, it's going to be some time before sales rise to 2000 levels. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.