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Semicon equipment growth to slow down in mid-2007

Posted: 21 Aug 2006     Print Version  Bookmark and Share

Keywords:Strategic Marketing Associates  Wright Williams & Kelly  SMA  chip  IC equipment 

Recent double-digit growth rates for the semiconductor capital equipment industry will return to single-digit growth by the middle of next year, according to a report by a pair of industry consulting firms.

Annual sales growth is projected to decelerate to a rate of about five per cent by mid-2007, followed by a more attractive cumulative growth rate of about 17 per cent per year over the next four years, according to the report authored by Strategic Marketing Associates (SMA) and Wright Williams & Kelly Inc.

"Although June quarter equipment sales were up nearly 60 per cent compared to the same quarter a year ago, we anticipate a more rapid deceleration to single-digit sales growth by mid-2007," said George Burns, president of SMA.

The jointly created EquipmentFutures report finds that, of six equipment segments tracked, all will continue to grow over the five-year forecast but at a lower rate. The report also concludes that flash memory content in consumer electronics will be a primary growth driver for the semiconductor industry and that consumer electronics is forecast to grow at an average annual growth rate of about 19 per cent over the next five years, the companies said.

According to Burns, the semiconductor industry continues to follow historical cyclical growth patterns dating back to 1976. Burns added that research supports equipment sales strengthening by mid-2008 as chip makers add production equipment required to support the most advanced process technologies.

- Dylan McGrath
EE Times




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