Chip capital spending to drop 24% in 2002, says new Dataquest forecast
Industry capacity utilization now at 60% but will rise to 80% by year's end, says research firm
Semiconductor Business News
(01/07/02 16:28 p.m. EST)
siliconstrategies.com
PEBBLE BEACH, Calif. -- Still faced with glut of chip capacity worldwide, semiconductor manufacturers are expected to cut their total capital spending budgets for plants and production equipment by about 24% in 2002 from $44.4 billion in 2001, said Dataquest Inc. today.
Spending on chip production systems will recover in the second half of 2002, but for the entire year, semiconductor capital equipment revenues will end up 19% below $25.2 billion in 2001, according to a new forecast released by Dataquest at the annual Industry Strategy Symposium here today.
"A macroeconomic recovery and returning electronic equipment demand should finally bring the 'demand-component' of the down cycle under control," said Klaus Rinnen, chief analyst and director of Dataquest's semiconductor manufacturing group. "However, overcapacity remains excessive and still demands industry attention," added Rinnen, who spoke at a press conference at the executive summit, which is sponsored by the Semiconductor Equipment and Materials International (SEMI) trade group.
Rinnen estimated that worldwide chip capacity utilization is now running at about 60%, and it would improve to around 80% by the end of next year. |
