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IC equip to achieve 24% growth rate

Posted: 07 Dec 2006     Print Version  Bookmark and Share

Keywords:semiconductor  capital equipment  equipment  revenue  growth 

Semiconductor capital equipment revenue will reach Rs.1,84,993.28 crore ($40.64 billion) in 2006, achieving a 24 per cent growth rate, according to a consensus member company forecast from Semiconductor Equipment and Materials International (SEMI).

SEMI said in July it expected the market to grow by 18 per cent in 2006 as compared to 2005, when the market contracted by 12 per cent.

According to the year-end edition of the SEMI Capital Equipment Consensus Forecast, which was created with input from leading vendors, chip capital equipment revenue will grow to reach more than Rs.2,27,600 crore ($50 billion) in 2009. The forecast projects that revenue will achieve single-digit growth in 2007, double-digit in growth 2008 and single-digit growth in 2009.

"For most of the past year, our industry has experienced a significant increase in demand for semiconductor devices, as well as strong economic conditions," said SEMI President and CEO Stanley Myers, in a statement. "SEMI members have experienced strong overall sales of chip manufacturing equipment in 2006, and anticipate the market within the next three years."

Wafer processing equipment, the largest product segment by dollar value, is expected to grow more than 26 per cent in 2006 to Rs.1,31,279.68 crore ($28.84 billion), SEMI said. Survey respondents anticipate that the market for assembly and packaging equipment will expand 13 per cent to Rs.10,924.80 crore ($2.4 billion) in 2006, the organisation said. The market for equipment to test semiconductors is expected to increase by about 22 per cent to Rs.29,360.40 crore ($6.45 billion) this year, the trade group said.

The Japanese market, which is projected to grow 11 per cent this year, remains the largest market region for worldwide equipment sales with Rs.41,468.72 crore ($9.11 billion) of new equipment sold into the region in 2006, according to the forecast.

Meanwhile, the South Korean equipment market is projected to grow by 20 per cent while sales of new equipment in China and the Rest-of-World market regions will grow 80 per cent and 31 per cent respectively, SEMI said.

- Dylan McGrath
EE Times

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