Chipmakers' capex to rise slowly, say SMA reports
By Peter Clarke, Semiconductor Business News
Apr 28, 2003 (9:47 AM)
URL: siliconstrategies.com
SANTA CRUZ, Calif. --- Chipmakers' capital expenditure will be down 2 percent in 2003 compared with 2002, despite a strong fourth quarter 2003 according to quarterly forecast data contained in two reports from market research company Strategic Marketing Associates (SMA).
The two reports show that 90-nanometer manufacturing processes are likely to drive the next surge in spending on equipment, the company said. In addition the company added that, while fab construction has been in a slowdown, there has been strong growth in fab construction spending in China.
The SMA data indicates that spending for equipment will rise slowly until the fourth quarter of 2003 by which time it is expected that double-digit growth will return to the industry. The projected growth is due to an increase in the number of 90-nm capable fabs in production. The number is expected to rise from four in the first quarter of this year to almost 50 by mid-2004. SMA also estimates that during this time spending for 300-mm wafer equipment will double, helped along by 15 new 300-mm wafer fabs coming on-line by mid 2004.
The forecast for fab construction, however, shows a decline of 2 percent for the year, according to SMA. But as more 300-mm fabs start construction, spending will begin to grow by the fourth quarter of 2003 and by early next year reach its highest level since 2001. SMA said that about nine 300-mm wafer fabs would start construction between now and the second quarter of 2004.
Part of the increase in fab construction spending is also due to the growing presence of China as a major force in the foundry business, SMA said. There are more fabs under construction in China and more construction spending there than any other region of the world, according to the SMA data.
“China is now growing as fast as Korea or Taiwan did during their growth periods,” said George Burns, SMA president, in a statement. “The country's share of equipment spending, for example, will grow from 11 percent of the total in the first quarter of this year to 15 percent by the second quarter of 2004.” |
