LONDON — The size of the semiconductor equipment market is set to fall by 9.4 percent to $30.7 billion in 2005 after a growth spurt of 52.7 percent took it to $33.9 billion in 2004, according to The Information Network, a New Tripoli, PA-based market research company.
The only region that is expected to register any growth in 2005 is Europe, which would expand its consumption of chipmaking equipment by 2.9 percent. Mainland China, the big growth market of 2004, is set to go through the largest contraction, by 33.6 percent in 2005 (see tables below).
Strong growth in Mainland China and Taiwan in 2004, 146.1 percent and 124.0 percent, respectively, helped the worldwide semiconductor market in 2004. Japan was the leading consumer of equipment, the market growing 35.3 percent and representing 22.2 percent of all chipmaking equipment purchases in 2004. The Rest of World region, which comprises equipment sales in Singapore, Malaysia, and other markets, grew 92.1 percent, while the North American market grew the least at only 10.8 percent, indicative of the movement of manufacturing from west to east, The Information Network said.
"Semiconductor manufacturers will need to absorb $4.43 billion in excess equipment purchases in 2004, which drove capacity utilization to the mid-80 percent range in Q4, and will result in a 9.4 percent drop in revenues in 2005," said Robert Castellano, president of The Information Network, in a statement. "Nevertheless, the total market of $30.7 billion will still be 38.4 percent higher than 2003."
Semiconductor equipment market by region 2003 to 2005 ($ billions)
| Region |
2003 |
2004 |
% growth |
2005 |
% growth |
| Japan |
$5.55 |
$7.51 |
35.3 |
$6.39 |
-14.9 |
| Taiwan |
$2.92 |
$6.54 |
124.0 |
$5.88 |
-10.1 |
| N. America |
$4.73 |
$5.24 |
10.8 |
$5.14 |
-1.9 |
| S. Korea |
$3.18 |
$4.66 |
46.5 |
$4.49 |
-3.6 |
| Rest of World |
$2.10 |
$4.03 |
92.1 |
$3.76 |
-6.8 |
| Europe |
$2.56 |
$3.07 |
19.9 |
$3.16 |
2.9 |
| China |
$1.15 |
$2.83 |
146.1 |
$1.88 |
-33.6 |
| Total |
$22.19 |
$33.88 |
52.7 |
$30.70 |
-9.4 |
| Source: The Information Network, February 1, 2005 |
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