SUNNYVALE, Calif. -- There is expected to be nine companies in the $1 billion capital spending club in 2010, according to IC Insights Inc. (Scottsdale, Ariz.).
That compares to eight companies in 2009, according to the research firm, although capital spending is controlled by fewer and fewer chip makers today.
According to IC Insights, the $1 billion spenders include the following IC firms in 2010: Samsung ($6 billion), Intel ($5.3 billion), TSMC ($3 billion), Hynix ($2 billion), Toshiba ($1.95 billion), AMD/GlobalFoundries ($1.9 billion), Micron ($1.3 billion), Nanya ($1.1 billion) and Elpida ($1 billion).
The top five capital spending leaders make up 49 percent of worldwide spending, according to the firm. That compares to 40 percent in 2005.
In other words, fewer players control more of the capex and the big chip makers ''are getting bigger,'' said Bill McClean, president of IC Insights Inc. (Scottsdale, Ariz.), at an event here.
In total, capital spending is expected to hit $36.985 billion in 2010, up 45 percent over 2009, according to the firm. That compares to a 41 percent decline in 2009.
Capital spending is expected to rise quarter-over-quarter in 2010. Capital spending is expected to hit $8.1 billion in Q1, $8.8 billion in Q2, $9.6 billion in Q3, and $10.5 billion in Q4, according to the firm.
In 2007, memory makers spent a staggering $32.3 billion in terms of total expenditures, according to IC Insights. In 2010, capital spending for memories is projected to hit $14.4 billion, compared to a meager $6.8 billion in 2009, according to IC Insights.
Even the $14.4 billion figure is not enough to meet demand for memory devices in 2010, said McClean. ''It's not enough,'' McClean said. ''It's not even close.''
DRAM capital spending hit $3.2 billion in 2009, compared to $9.7 billion in 2008. In 2010, it is expected to hit $7.7 billion, according to the firm.
To keep up with demand, memory makers in total must spend at least $17 billion this year, he added.