Semiconductor capital spending will increase in 2010
Capex in 2009 by chipmakers will fall again.
By Jim Carbone -- Purchasing, 4/21/2009 3:35:00 PM
Capital spending by semiconductor companies will drop 39% in 2009 to $26.6 billion after declining 28% in 2008. However, beginning in 2010 semiconductor capital spending will increase for three straight years, according to researcher IC Insights.
In 2010 capital pending will rise 15% to $30.6 billion. Spending will increase 35% in 2010 and another 29% in 2012 when it will reach $53.3 billion, says the researcher. That’s good news for semiconductor buyers because it means more chip capacity will be added which should lead to lower prices.
However, while semiconductor industry capital spending will increase, it is not expected to exceed 2000’s level of $61 billion over the next four years at least.
Total semiconductor industry capital spending in 2013 will decline 12% to $47.0 billion, which will be about 13% of total semiconductor sales, according to IC Insights.
Chipmakers will be will be more conservative in capital expenditures moving forward. Capital spending as a percent of sales will range from 12-15% over the next four years as semiconductor sales revenue increases. In previous upturns capital spending as a percentage of sales ranged from 18-29% per year.
Also see: Many companies to reduce capital spending, production capacity
Semi Capex Down for Now
06/17/2009IC companies cut capital spending
06/10/2009Minimal growth forecast for chip investment
07/13/2007IC industry poised for recovery in 2010
07/16/2009Chip capital spending to see drop in 2005
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