Date: 16/01/2012

Semiconductor fab spending to down in 1st half and to up in 2nd half 2012

SEMI has reported semiconductor fab equipment spending is expected to decline by approximately 11 percent in 2012 with spending on Fab equipment is expected to drop in the first half of 2012 and sharply increase in second half of the year to approach $10 billion by the fourth quarter.

fab1

SEMI finds while fab spending in 2012 (at $35 billion) is a decline from the 2011 level of $39 billion, it is still higher than in 2010. The years 2007, 2011 and 2012 are expected to be the three highest years on record. Worldwide, Korea is the only region expected to show growth in fab equipment spending in 2012, mainly due to expected spending by Samsung, adds SEMI.

fab2
Source: SEMI World Fab Forecast November 2011 edition

SEMI says the current forecast of about 11 percent decline in fab equipment spending for 2012 depends largely on the investment plans of the largest spenders. While some companies have published their plans for 2012, others - including Samsung, Hynix, Intel and TSMC - could announce higher investment plans than anticipated, so fab spending for 2012 could improve, with the overall spending decline at about four percent according to SEMI's analysis.

Despite the economic situation, 300mm installed capacity is expected to grow at a steady pace in 2012. In 2011, the installed capacity for 300mm grew by about 13 percent (YoY), as per SEMI. The forecast from SEMI anticipates a small slow down to about 11 percent in 2012 and increasing to about 12-14 percent in 2013.

Compared to three years ago, spending and capacity are much higher. After a dip in the first half of 2012, the industry spending should pick up by mid-2012, explains SEMI.