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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (64285)	6/11/2002 1:18:57 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Chip Equipment Sales to Hit $100B in 2007, VLSI Says Online staff -- Electronic News, 6/10/2002 e-insite.net The market for semiconductors and related equipment will grow at a compound annual growth rate of 22 percent from 2002 through 2007, according to a recent forecast from researcher VLSI Research Inc. Chip equipment sales will reach $100 billion in 2007, VLSI said, from $36.8 billion in 2002. Though this forecast seems high considering the industry’s recent woes, VLSI says that when the figure is calculated as a CAGR from the high point of $60 billion in 2000, the industry average translates to only 8 percent per year. VLSI said it believes the market for chip equipment will make a slight comeback this year, but will continue to be in negative territory. Growth is predicted to resume in 2003 and will peak in 2004, VLSI said. However, another slowdown is expected in 2005, followed by recovery in 2006 and 2007. VLSI’s statistics not only cover equipment used to make chips, but also the equipment used for flat panel displays, thin film heads (TFHs) and MEMS. Although these markets remain relatively small compared with the IC market, VLSI said, but they are growing. In 2001, these markets represented $3.8 billion, or almost 10 percent of the total equipment sales. By segment, VLSI is predicting wafer fabrication will grow from $21.7 billion in 2002 to $59.2 billion in 2007, a 22.2 percent growth rate. Test and related systems is expected to grow 24.5 percent annually, from $8 billion in 2002 to $24 billion in 2007. Assembly will grow at a rate of 28.4 percent, from $2.4 billion this year to $8.5 billion in 2007, while spares and services will grow from $4.7 billion this year to $8.6 billion in 2007, a growth rate of 12.9 percent. By application, ICs are expected to grow at a rate of 19. 3 percent from $33 billion to $79.9 billion over the next five years. FPDs will grow 38. 6 percent annually, from $3 billion this year to $15.3 billion in 2007. TFHs will grow from $560 million to $2.5 billion, a growth rate of 34. 8 percent, VLSI said. Finally, MEMS are expected to grow 52.8 percent per year, from $310 million this year to $2.6 billion in 2007.