Global semiconductor capital expenditure is expected to increase this year

Market research firm IC Insights recently raised on 2006 semiconductor capital spending is expected, but the agency expects spending growth will slow down. According to the IC Insights estimates that in 2006 the global capital spending will reach $51 billion 300 million, more than 12% growth in 2005. Previously the company's forecast was 10%. At the same time, Intel will remain at the top of the capital spending, spending in 2006 was $6 billion 600 million, followed by Samsung Electronics $5 billion 700 million.

IC Insights did not change its overall forecast for the semiconductor market, that in 2006 the market will grow by 8~10%. It revised capital expenditure forecasts, in part because of increased spending by Japanese chipmakers. IC Insights said: taking into account the current expenditure budget, it is expected that in 2006 the cost of fluctuations in each quarter is less than in 2005."

IC Insights pointed out that the second quarter is expected to grow from $11 billion 700 million in the first quarter of $12 billion 500 million to $third in the fourth quarter of the year rose to $13 billion 300 million and $13 billion 800 million. From the growth of each quarter, the growth rate is expected this year, capital expenditures will decline by quarter. Growth is expected in the first quarter of 8%, an increase of second in the 7% quarter, an increase of third in the fourth quarter, an increase of 4% in the fourth quarter.