In comparison, the fab-tool market grew by 6 percent in 2007, according to SEMI (San Jose, Calif.). Following the downturn in 2008, the semiconductor-equipment market is projected to rebound with annual growth of 13 percent and 6 percent in 2009 and 2010, respectively, according to the trade group.

The poor climate is due to ''lower spending in the memory sector and a less than favorable device pricing environment,'' said Stanley Myers, president and CEO, of SEMI at a press event.

On a regional basis, China's fab-tool market is expected to grow a mere 1 percent. The rest of the markets are down. The fab-tool market in North America will fall by 13 percent, Japan will decline by 15 percent, Taiwan will decline by 37 percent, Europe will drop by 14 percent, South Korea will fall 18 percent and the rest-of-world will decline by 23 percent, according to SEMI.

Wafer processing equipment will fall by 20 percent in 2008, test gear will drop by 20 percent and assembly equipment will decline by 14 percent, according to SEMI.