After increasing 18% in 2006, total semiconductor industry capital spending will rise only 1% in 2007 according to researcher IC Insights.

Samsung will invest the most with $6.7 billion in capital expenditure (capex) outlays and Intel will be second at $5.5 billion. Although the two firms plan to lower their capital spending outlays during 2007 compared to 2006, they will represent a combined 22% of total semiconductor capital expenditures in 2007.

The top 25 companies are forecast to register a 2% increase in total 2007/2006 capital spending and will account for 87% of total worldwide semiconductor capital spending in 2007. Sixteen semiconductor companies have capital expenditure budgets of $1 billion or more for 2007. Five of these are based in Taiwan, four in the U.S., three in Japan, and two each are from Europe and South Korea.

The combined spending from the Taiwanese producers is expected to increase 16% in 2007, especially impressive after they logged a 37% increase in 2006.

Taiwanese, China- and Singapore-based companies are expected to be the most aggressive spenders in 2007 collectively boosting capital expenditures by 12%. North American companies will increase capex 1%; South Korean companies' capital outlays will be flat; European companies' capex will decline 5% and Japanese companies' capital spending will decline about 12%.

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