Gartner Says Worldwide Semiconductor Capital Spending to Decline 0.7 Percent in 2016

STAMFORD, Conn., July 21, 2016 - Worldwide semiconductor capital spending is projected to decline 0.7 percent in 2016, to $64.3 billion, according to Gartner, Inc. (see Table 1). This is up from the estimated 2 percent decline in Gartner's previous quarterly forecast.

"Economic instability, inventory excess, weak demand for PC’s, tablets, and mobile products in the past three years has caused slow growth for the semiconductor industry. This slowdown in electronic product demand has driven semiconductor device manufacturers to be conservative in increasing production," said  David Christensen, senior research analyst at Gartner. "Looking ahead, it appears the second half of 2016 may see improved demand. However, following Brexit, semiconductor inventory levels may rise in the third and fourth quarters, which could lead to reduced production volumes."

Table 1

Worldwide Semiconductor Capital Spending and Equipment Spending Forecast, 2015-2018 (Millions of Dollars)

 

2015

2016

2017

2018

Semiconductor Capital Spending ($M)

 

64,750.8

 

64,278.3

 

66,010.5

 

68,523.7

Growth (%)

0.3

-0.7

2.7

3.8

Wafer-Level Manufacturing Equipment ($M)

 

33,248.1

 

32,890.9

 

34,842.2

 

37,704.3

Growth (%)

-1.1

-1.1

5.9

8.2

Wafer Fab Equipment ($M)

31,485.4

31,071.8

32,862.1

35,491.5

Growth (%)

-1.3

-1.3

5.8

8.0

Wafer-Level Packaging and Assembly Equipment ($M)

 

1,762.7

 

1,819.1

 

1,980.1

 

2,212.9

Growth (%)

4.1

3.2

8.9

11.8

 

Source: Gartner (July 2016)

The PC, ultramobile (tablet) and smartphone production forecast for the second half of 2016 has been lowered from 2015, as the industry slowdown continues. These reductions have resulted in a forecasted 3 percent decline for the semiconductor market. Memory revenue growth for 2016 is also revised downward compared with the previous forecast, due to a weaker pricing outlook.

"While currency exchange rates are another reason for the ongoing revenue decrease, the aggressive pursuit of semiconductor manufacturing capability by the Chinese government and related investment companies is becoming a major factor," said Mr. Christensen. "This will dramatically affect the competitive landscape of the global semiconductor manufacturing in the next few years as China becomes a major market for semiconductor usage and manufacturing."

This research is produced by Gartner's Semiconductor Manufacturing program. This research program, which is part of the overall semiconductor research group, provides a comprehensive view of the entire semiconductor industry, from manufacturing to device and application market trends. Additional analysis on the outlook for the market can be found at " Forecast: Semiconductor Capital Spending, Worldwide, 2Q16 Update."

About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 8,100 associates, including more than 1,700 research analysts and consultants, and clients in more than 90 countries. For more information, visit  www.gartner.com.



Contact:

Rob van der Meulen
Gartner
Email Contact

Amy Ann Forni
Gartner
Email Contact




Review Article Be the first to review this article

Aldec Simulator Evaluate Now

Featured Video
Jobs
Principal PIC Hardware Controls Engineer for Infinera Corp at Sunnyvale, CA
ASIC Design Engineer for Infinera Corp at Sunnyvale, CA
Senior PIC Test Development Engineer for Infinera Corp at Sunnyvale, CA
Senior DSP Firmware Engineer for Cirrus Logic, Inc. at Austin, TX
Design Verification Engineer for Cirrus Logic, Inc. at Austin, TX
Senior Formal FAE Location OPEN for EDA Careers at San Jose or Anywhere, CA
Upcoming Events
IC Open Innovation Panel During REUSE 2017 at Santa Clara Convention Center 5001 Great America Parkway Santa Clara CA - Dec 14, 2017
Essentials of Electronic Technology: A Crash Course at Columbia MD - Jan 16 - 18, 2018
Essentials of Digital Technology at MD - Feb 13 - 14, 2018
CST: Webinar series



Internet Business Systems © 2017 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise