JP Morgan raises capital spending forecast in '03, '04
By Mark LaPedus
Silicon Strategies
12/11/2003, 2:00 AM ET
SANTA CLARA, Calif.--Growing demand for ICs has prompted one investment banking firm to raise its worldwide semiconductor capital spending forecast for both 2003 and 2004.
Speaking at the annual SEMI dinner and awards ceremony on Wednesday (December 10, 2003) evening, Jay Deahna, an analyst with J.P. Morgan Chase & Co. of New York, said that semiconductor capital spending will increase 4 percent in 2003, up from its previous forecast of flat to down 5 percent this year. At the same time, J.P. Morgan also increased its forecast for IC growth in 2003, from 17 percent in its previous prediction, to 18 percent right now, Deahna said.
Worldwide capital spending is expected to jump 35 percent in 2004, up from its previous prediction of up 25 percent, he said. In other words, capital spending is projected to hit $47 billion in 2004, up from $45 billion in its original forecast.
"The good times are here for the next few years," he said during the event, sponsored by the Semiconductor Equipment and Materials International (SEMI) trade group. |
