Feeds

Chip makers to increase spending this year

Up 13 per cent from last year's 55 per cent cut

  • alert
  • submit to reddit

The world's chip makers will spend 13 per cent more on plant and equipment this year compared to 2002, market watcher Strategic Marketing Associates (SMA) has forecast.

Last year, semiconductor companies spent $28 billion on capital expenditure. This year, they will spend $31.6 billion. The increase in spending will take place in all territories but the US, where capex is still falling. Overall capex will increase $3.6 billion; in the US it will fall by almost $8 billion, SMA said.

Even so, the US will still account for 30 per cent of the total capex. Asia-Pacific will spend 40 per cent, Japan 20 per cent and Europe ten per cent. Asia-Pacific will lead this year's increase, spending an extra $3.4 billion out of the $3.6 billion overall increased spend.

This year's increases follow major reductions made last year - spending in 2002 was down a whopping $33 billion (55 per cent) on 2001, SMA said, leading to the lowest capex-to-chip sales ratio for 20 years. That some companies are starting to increase their spending suggests they believe they need to "support projected increases in sales and the move to advanced technologies".

They're not all doing so. SMA points out that leading vendors Intel, TSMC, UMC and Chartered are all cutting capex. But their actions are being balanced by increased spending by DRAM makers and integrated device manufacturers. ®

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Reducing the cost and complexity of web vulnerability management
How using vulnerability assessments to identify exploitable weaknesses and take corrective action can reduce the risk of hackers finding your site and attacking it.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.