Worldwide capital equipment spending is on pace to grow 66% in 2004. But, despite this strong growth, the industry will begin to experience a downward cycle in 2005, according to Gartner, Inc. Capital equipment spending in 2005 is projected to decline 0.6%. While there are concerns for 2005, 2004 is turning out to be one of the best years for the semiconductor capital equipment market. Wafer fab equipment (WFE) revenue is on pace to rise 72%, while packaging and assembly equipment (PAE) revenue will grow 49%. Automated test equipment (ATE) revenue will increase by 52% in 2004.
Worldwide Semiconductor Capital and Equipment Spending Forecasts
(Millions of Dollars)
2003 2004 2005 2006 2007 2008
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Semiconductor Capital
Spending 29,661 45,652 45,826 38,428 41,760 62,801
Growth (Percent) 7.5 53.9 0.4 -16.1 8.7 50.4
Capital Equipment 22,824 37,967 37,734 29,025 32,145 47,812
Growth (Percent) 10.3 66.3 -0.6 -23.1 10.7 48.7
Wafer Fab Equipment 16,742 28,829 29,085 22,387 23,932 36,360
Growth (Percent) 3.5 72.2 0.9 -23.0 6.9 51.9
Packaging and Assembly
Equipment 3,060 4,553 3,915 3,333 4,433 6,107
Growth (Percent) 30.5 48.8 -14.0 -14.9 33.0 37.8
Automated Test Equipment 3,021 4,585 4,735 3,305 3,780 5,345
Growth (Percent) 39.4 51.7 3.3 -30.2 14.4 41.4
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Source: Gartner Dataquest (October 2004)