Prediction: semiconductor capital spending this year increase of 10% reached 50 billion

A report of in Arizona, a semiconductor market research firm released before the forecast, this year's global semiconductor industry capital spending will increase 10% over last year, the total expenditure will be following the 2000 after the history of the more than and 2 years since.

Insights, a semiconductor market research firm in Arizona, released the report IC. The agency pointed out that, semiconductor industry capital spending will reach $50 billion 400 million this year, only $60 billion 300 million in 2000. IC Insights expects this year's capital expenditure growth of 10%, more than the previous part of the agency's forecast of 4%.

Reported that in 2004, the global semiconductor industry capital expenditure grew by 53%, reaching the peak of the industrial cycle in recent years. Although this year's growth rate of only 10%, but in the history of the various industry cycles, is still in the peak after the second increase.

In 2005, semiconductor capital spending accounted for 227 billion 500 million of sales of $20.2%. IC Insights is expected this year, the global semiconductor market capacity will grow 8% to $246 billion 700 million, while capital expenditure increased by 10%. Thus, the proportion of capital expenditure to sales this year will grow to 20.4%. This figure is not high. In the industry peak period in 1995 and in 2000, the proportion of capital expenditures accounted for sales of 32% and 30%.

IC Insights believes that this year the semiconductor industry will not appear oversupply. However, in the market segments such as flash memory, there may still be oversupply. At present, Intel and micron, Samsung Electronics, Toshiba and SanDisk are considering building a new flash factory, to the second half of this year or early next year, IC Insights think there could be a flash of oversupply.

Last week, another semiconductor market research firm in California, iSuppli, said the oversupply of flash memory will have a negative impact on the price of DRAM.