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Five IC makers join $3B 'capex club'

1/21/2011 02:46 PM EST
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docdivakar
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re: Five IC makers join $3B 'capex club'
docdivakar   1/25/2011 9:46:15 PM
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@Junko: I agree that a few are spending the bulk of the investments; this will certainly have an impact on innovation. To that end, the onus is on the few big spenders to nurture a development/innovation forum for the have-nots to participate. A case in point would be the Global Foundries' "Common Platform Alliance" which seems to have gotten off to a good start. I noticed IBM weaning itself off the Semi CapEx cycle in 2011; it seems IBM will be more of an R&D player as semiconductor technology advances. MP Divakar

sranje
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re: Five IC makers join $3B 'capex club'
sranje   1/23/2011 6:58:20 AM
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2011 CaEx level is nearly identical to 2010 CapEx level. Neither DRAM nor NAND is in any overcapacity - the result will likely be stable ASPs. Both 2011 and 2012 will likely be strong years (10%+ growth) except if we enter another oil shock - price/barrell at $100 or so. The main concern is that oil prices are already above $90/barrell. What amazes me is tht IC Insights holds the same 10% projection since September -- more conservative forecasts are all being revised upwards...

junko.yoshida
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re: Five IC makers join $3B 'capex club'
junko.yoshida   1/22/2011 6:12:49 PM
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I think it all depends on an individual company's investment cycle. (Some invested more last year but spending less this year) But looking at 2011 figures, the continuous investments by Intel and Globalfoundries stand out. Does this have an impact on the innovation? Absolutely. Without continuously substantial investments, how do we expect to have our next-node chips manufactured?

yalanand
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re: Five IC makers join $3B 'capex club'
yalanand   1/22/2011 2:46:07 PM
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Junko, Will spending less in anyway impact the semiconductor industry growth? Will it have any impact on the innovation ?

junko.yoshida
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re: Five IC makers join $3B 'capex club'
junko.yoshida   1/22/2011 1:11:24 PM
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No doubt that there will be more mergers and acquisitions in this industry...but, again, it never ceases to amaze me how much money chip manufacturers need to spend to keep up with their competitors. But notice, those who are increasing their spending in 2011 (see 2011/2010 change) are far fewer and they are spending less. Even those who are spending are spending less...

KB3001
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CEO
re: Five IC makers join $3B 'capex club'
KB3001   1/21/2011 11:09:32 PM
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I agree. Consolidation will take place more and more.

goafrit
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re: Five IC makers join $3B 'capex club'
goafrit   1/21/2011 10:08:46 PM
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Sees the industry is awash with cash. I still think that we have got many players and we need mergers to help margin in the industry. Think of the airline industry.

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