SEMI Issues Bright Forecast for 2010 Global Equipment Capex

Taipei, Sept. 8, 2010 (CENS)--Semiconductor Equipment and Materials International’s (SEMI’s) latest World Fab Forecast estimated that global expenditure on semiconductor manufacturing equipment will shoot up 130% this year to top US$36 billion and the spending growth will last into 2011.

Despite vigorous expansions by makers around the world, SEMI, a global trade association representing microelectronic, display and photovoltaic industries, said that excessive supply of the industry is not likely to happen in the short term.

Of the major equipment shoppers surveyed by the association Taiwan will likely remain the No.1 spender this year, with estimated outlay of US$9.18 billion, soaring 111% from last year. The huge capital expenditure forced Taiwan’s government to revise upward its projection for the growth of the nation’s private-sector investment for this year to 23.40% from 14.81 % forecast in February.

The SEMI’s market analysts estimated the expenditure as a percentage of the revenue worldwide to rebound to 11% this year and 12% next year from the 2008-2009 global recession, compared with the peak of 14% from 2004 to 2007.

SEMI executives pointed out that global shipment of silicon wafers hit a record high of 2.3 billion square inches in the second quarter, inspiring chipmakers to add capacity to their productions.

SEMI statistics show that North America-based manufacturers of semiconductor equipment posted US$1.83 billion in orders in July 2010 (three-month average basis) and a book-to-bill ratio of 1.23. A book-to-bill of 1.23 means that US$123 worth of orders was received for every US$100 of product billed for the month.