Spending by memory companies is expected to be the second largest driver of global fab tool spending in both 2013 and 2014. SEMI expects memory chip vendors to spend about $9 billion on fab equipment this year and more than $12 billion in 2014.
The five top spenders on capital equipment -- Intel, Samsung, TSMC, Globalfoundries, and SK Hynix -- are expected to spend roughly $41 billion in capital spending this year, an increase of about $2 billion from last year, SEMI said. The capital spending total for the top five vendors exceeds the estimated total for the entire semiconductor equipment market because that number includes more than just tool spending, but also spending on new fabs and other items.
SEMI expects the semiconductor equipment market to contract in 2013, but rebound strongly in 2014. (Source: SEMI)
SEMI predicts that most major regions of the world will see significant equipment spending increases in 2014. The trade group expects spending on front-end wafer processing equipment to grow 24 percent in 2014 to $35.6 billion, up from a projected $28.7 billion this year. Test equipment spending is expected to grow 6 percent next year to $3.18 billion, SEMI said, while assembly and packaging equipment spending is projected to grow 14 percent to $2.9 billion.
SEMI projects that fab tool spending will increase by 82 percent next year in China, 79 percent in Europe, 31 percent in South Korea, 32 percent in Japan, 9 percent in North America, and 2 percent in Taiwan. The organization expects Taiwan to remain the biggest spender on capital equipment, thanks largely to TSMC, with spending projected to rise to $10.6 billion in 2014.
Scroll through the following pages for more of the slides Tracy presented Monday.