Semiconductor firms to spend big: SEMI

By Lisa Wang  /  Staff reporter

Thu, Dec 05, 2013 - Page 13

Global spending on equipment by semiconductor firms is expected to slide 13.3 percent annually to US$32.02 billion this year, but Taiwanese companies are expected to go against the trend by increasing their equipment budgets by 7 percent, Semiconductor Equipment and Materials International (SEMI) projected yesterday.

Local semiconductor businesses are expected to purchase US$10.19 billion worth of equipment this year, SEMI said. That figure would make Taiwan the world’s largest buyer of semiconductor equipment for the second straight year, it added.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is expected to spend US$9.7 billion on equipment this year and may budget US$10 billion for next year.

SEMI said that the global semiconductor equipment industry is expected to regain growth momentum next year and into 2015.

Global semiconductor companies are to boost their spending by 23 percent annually to US$39.46 billion next year and by another 2.38 percent in 2015 to US$40.4 billion, SEMI predicted.

“We expect the world’s semiconductor equipment market to grow next year, as well as the year after,” SEMI Taiwan president Terry Tsao (曹世綸) said in a statement.

“Taiwan is set to be the No. 1 buyer for the fourth year in a row in 2015, indicating good prospects for the nation’s semiconductor industry,” Tsao added.

Under this prediction, South Korea would follow with U$8.14 billion in 2015, compared with US$7.6 billion for next year and US$5.5 billion this year, while North America would seize third place with US$7.46 billion spent on equipment in 2015, up from next year’s US$7.73 billion and US$5.74 billion this year.

Taiwanese semiconductor firms are expected to boost equipment spending by 7.85 percent to US$10.99 billion next year and spend a flattish US$10.98 billion in 2015, SEMI forecast.