Only Taiwan, China Chipmakers to Spend More This Year (Update1)
By Alan Patterson
quote.bloomberg.com
Taipei, May 17 (Bloomberg) -- Taiwanese and Chinese chipmakers are the only ones that will boost spending this year because more manufacturing is shifting to made-to-order companies such as Taiwan Semiconductor Manufacturing Co., a researcher said.
Taiwan chipmakers will increase spending this year by 53 percent to $6.4 billion from $$4.2 billion a year ago, becoming the largest investors in Asia, said Aida Jebens, an analyst with VLSI Research Inc.
Spending by chipmakers in China, Singapore and Malaysia, 90 percent of which is accounted for by Chinese companies, will rise 52 percent this year to $6.1 billion, Jebens said. Foundries, which make chips on contract, are preparing for a recovery in chip demand that will strengthen in the second half, she said.
``Most of the growth will be in the chip-foundry business,'' Jebens said. Global investment will fall to $36.9 billion from $39.3 billion a year ago, she said. Foundries include companies such as TSMC, the world's biggest, United Microelectronics Corp., also based in Taiwan, and Chartered Semiconductor Manufacturing Ltd. of Singapore.
TSMC has said it will invest $2.5 billion for expansion this year, compared with $2.2 billion last year. United Microelectronics, its nearest rival, said it plans to spend $1.6 billion this year. Both companies recently increased investment plans to meet better-than-expected demand. |
