Chip Equipment Sales Expected to Grow 24% and Hit $40.64 billion in 2006 - SEMI

Semiconductor equipment sales are expected to jump 24% versus last year to reach $40.64 billion in 2006, according to the SEMI Capital Equipment Consensus Forecast, released by SEMI at the annual SEMICON Japan exposition.

The report forecasts the market growing at a single-digit rate in 2007, double digits in 2008 and then back to single digits to reach $50.42 billion in 2009. The market declined 12% in 2005.

“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 T. Myers. "SEMI members have experienced strong overall sales of chip manufacturing equipment in 2006, and anticipate a $50 billion market within the next three years.”

  • Wafer processing equipment, the largest product segment by dollar value, is expected to grow over 26% in 2006 to $28.84 billion. 
  • Assembly and packaging equipment will expand 13% to $2.40 billion in 2006. 
  • The market for equipment to test semiconductors is expected to increase by about 22% to $6.45 billion this year.

The Japanese market, which is projected to grow 11% this year, remains the largest market region for worldwide equipment sales with $9.11 billion of new equipment sold into the region in 2006.

  • South Korea continues its expansion in 2006, with projected growth of 20 percent. 
  • Sales of new equipment in China and the Rest-of-World market regions will grow 80 percent and 31 percent respectively.

The SEMI Year-End Consensus Forecast is based on interviews conducted between late October and November 2005 with companies representing a majority of the total sales volume for the global semiconductor equipment industry.

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