Business Big capex decline

Business Big capex decline

2013/09/25

Behind the Applied-Tokyo Electron merger could be a precipitous decline in spending on semiconductor manufacturing equipment.

Gartner is expecting the decline to be 8.5% this year.

This year’s spend is expected to be $34.63 billion. Last year’s was $37.83 billion.

If you add in the cost of building fabs, the decline in overall capex is expected to be 6.8% to $54.77 billion.

Half of that will be spent by Intel, Samsung and TSMC.

By contrast, to the equipment manufacturers, the device manufacturers are expected to see a market increase north of 5%.

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