SAN JOSE, Calif. Intel Corp. is projected to top Samsung Electronics Co. Ltd. in capital spending for 2006, according to the new rankings from investment banking firm Pacific Crest Securities Inc. (See rankings table below)
In rankings from various other research houses, South Korea’s Samsung is projected to outspend Intel in 2006. But according to Pacific Crest, Intel is expected to spend $6.9 billion in 2006, compared to $5.6 billion from Samsung.
In recent times, Intel has announced a dizzying array of new fabs, it was noted.
Meanwhile, Pacific Crest (Portland, Ore.) also raised its forecast for capital spending to $52 billion for 2006, up 13.4 percent over 2005. Originally, the firm projected that capital spending would hit $47.2 billion in 2006, up only 1.1 percent over 2005. In 2005, worldwide capital spending fell 2 percent to $45.9 billion, according to the firm.
Pacific Crest said that capital spending will “peak” at the $52 billion figure. “We believe that is as high as it will get,” said Mark Bachman, an analyst with the firm.
The firm did not change its forecast for growth in the semiconductor industry in 2006. It still projects 11.1 percent growth in 2006 over 2005.
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