Foundries drive fab equipment growth
By Staff -- Purchasing, 2/10/2000
The worldwide wafer fab equipment market will grow 43.5% to $25 billion in 2000 and is poised for double-digit growth through 2002, according to market researcher Dataquest."The long-term prospects are good as foundry service providers are positioned to benefit from a strong trend toward the outsourcing of manufacturing in the semiconductor industry," says Clark Fuhs, vice president and director for Dataquest's semiconductor manufacturing programs. "The return to a relative balance of capacity and demand and stable pricing will bring two to three additional years of strong expansion from 2000 through 2002."
Strong equipment demand increased demand for semiconductors. "Better-than-expected PC and cellular phone shipments account for a large part of the unexpected demand for silicon, as well as continued investment in infrastructure associated with Internet applications," says Fuhs. "Silicon demand actually began to plateau early in the fourth quarter of 1999, as the fabs consuming the wafers were full and many semiconductor producers began accelerating equipment orders as a result."
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