Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • PC Hardware
    • Small Business

    Samsung, Intel Lead Capital Spending in Semiconductor Market

    By
    Nathan Eddy
    -
    April 25, 2014
    Share
    Facebook
    Twitter
    Linkedin

      Capital spending in the worldwide semiconductor equipment is expected to increase 5.5 percent in 2014 as the industry begins to recover from the recent economic downturn, according to a report from IT research firm Garter.

      Total spending will follow a generally increasing pattern in all sectors through 2018, while capital equipment spending in the market is projected to total $37.5 billion this year.

      The capital spending forecast estimates total capital spending from all forms of semiconductor manufacturers, including foundries and back-end assembly and test services companies. Capital spending represents the total amount spent by the industry for equipment and new facilities.

      Gartner predicts that 2014 semiconductor capital spending will increase 5.5 percent, followed by 10 percent growth in 2015. The next cyclical decline is expected to be a slight drop of 3.3 percent in 2016, followed by a return to growth in 2017 and 2018.

      The report projected logic spending would remain the key driver of capital spending throughout the forecast period, but due to the anticipated softening of mobile markets it will grow less than memory.

      Memory will provide most of the growth in capital spending through 2018, with NAND Flash being the primary impetus, the report said.

      Spending by the top five semiconductor manufacturers exceeds 64 percent of total projected 2014 spending, with the top 10 accounting for 78 percent of the total.

      “While capital spending outperformed wafer fab equipment (WFE) spending in 2013, the reverse will hold for 2014,” Bob Johnson, research vice president at Gartner, said in a statement. “Total capital spending will grow by 5.5 percent, while WFE will increase 13 percent as manufacturers pull back on new fab construction and concentrate in ramping new capacity instead.”

      The top three companies–Intel, TSMC and Samsung–continued to account for more than half of total spending.

      “Momentum from exceptionally strong fourth-quarter 2013 sales is carried forward into the first quarter, then is expected to bounce around a flat trend line through the remainder of 2014,” Johnson continued. “In the longer-term profile, growth continues through 2015, dips slightly in 2016 and increases through 2018.”

      Although demand from smartphones and media tablets is producing leading-edge demand for logic production, it is not enough to bring total utilization up to desired levels, the report noted.

      Gartner said it expects utilization rates to climb upward again in 2014, as demand for chip production returns, and overall utilization rates will return to normal levels through 2014, providing continued impetus for capital investment.

      Avatar
      Nathan Eddy
      A graduate of Northwestern University's Medill School of Journalism, Nathan was perviously the editor of gaming industry newsletter FierceGameBiz and has written for various consumer and tech publications including Popular Mechanics, Popular Science, CRN, and The Times of London. Currently based in Berlin, he released his first documentary film, The Absent Column, in 2013.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×