SAN JOSE, Calif. Sixteen chip makers have joined the elite "$1 billion capital spending club" amid an improved outlook for worldwide semiconductor expenditures in 2005, according to a report from investment banking firm Pacific Crest Securities Inc. (See "top-25 spenders" table below)
In total, worldwide capital spending is projected to hit $45.1 billion in 2005, down 6 percent over 2004, according to Pacific Crest (Portland). In January, the firm projected that worldwide capital spending would fall by 12 percent this year.
At the time, the firm also listed its "top-25 spenders" for 2005. In those rankings, there were 18 chip makers projected to spend $1 billion or more in terms of capital for 2005 (see Jan. 4 story).
In the updated list, there are 16 chip makers in the $1 billion club. Samsung Electronics Co. Ltd. and Intel Corp. are the only two chip makers in the $5 billion club.
Pacific Crest is also maintaining its previous forecast, in which the worldwide semiconductor market will decline by 4 percent in 2005 over 2004. Unit shipments are projected to grow by 1 percent in 2005, but average selling prices will fall by 5 percent, according to the report.
Click link to see top-25 spenders for 2005:
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