Japan quake won't slow capex, says analyst
April 08, 2011 // Dylan McGrath
Semiconductor industry capital spending is projected to grow to $60.4 billion in 2011, up 17 percent from $51.8 billion in 2010, according to a revised forecast issued Thursday (April 6) by market research firm IC Insights Inc.
IC Insights (Scottsdale, Arizona) said it expects chip industry capex invest to further rise in 2012 to set a new all-time high of an estimated $63.3 billion.
In January, IC Insights projected that semiconductor capital spending would grow 15 percent in 2011 to reach just over $59 billion.
Capital expenditure growth is being drive driven by new manufacturing lines and upgrades to smaller process geometries from foundries as more IC suppliers look to outsource production, IC Insights said. DRAM and flash memory suppliers are spending primarily to upgrade to smaller process geometries, according to the firm.
The top 10 semiconductor industry spenders are forecast to increase their outlays by 25 percent this year, IC Insights said. In contrast, the remaining semiconductor industry companies are expected to cut their capital expenditures by 1 percent, according to the firm.
South Korea's Samsung Electronics Co. Ltd., which spent $10.9 billion on semiconductor capital expenditures last year—with about 71 percent going to memory—is expected to spend more than $9 billion on capex in 2011, with about 56 percent going toward memory, IC Insights said. Samsung's 2010 capital spending accounted for 21 percent of the semiconductor industry's total capex last year, IC Insights said.
IC Insights said its analysts believe that the large jump in capital expenditures in 2010 and the spending amounts forecast for 2011 should not be considered excessive. Capital spending as a percent of sales was only 16 percent in 2010, the second lowest level on record, with 2011 spending as a percent of sales forecast to be 17 percent, according to the firm. IC Insights believes that this level of capital spending will not lead to an industry-wide overcapacity situation through 2012, the firm said. The ratio of capital spending to semiconductor sales is expected to stay in a narrow range of 14 to 17 percent over the next five years, IC Insights said.
High voltage LEDs help simplify compact fixture design
March 11, 2014
Philips Lumileds has launched a mid-power LED which allows lighting manufacturers to design in high voltage drivers that ...
Fullerene-free organic solar cells achieve record conversion efficiency
Abu Dhabi creates iMicro hub for microsystems research
Low-power wireless modules market reaches USD1.40bn in 2014
Certification program clears market path for LED luminaires
Executive Interview: Channelling higher power into smaller packages
March 11, 2014
EE Times Europe Power Management's editor, Paul Buckley interviews Phil Davies, VP Global Sales & Marketing of Vicor ...
Energy efficient 4-Gb DDR3 memory enters mass production
The EFM32 Zero Gecko starter kit in stock at RS Components
Novel nickel-manganese-cobalt cathode technology gains patent clearance
- DSM presents: Select the best plastic for DDR4
- Wireless Sensor Network Challenges and Solutions
- Putting FPGAs to Work in Software Radio Systems Handbook
- Real-Time Spectrum Analysis for Troubleshooting 802.11n/ac WLAN Devices
InterviewExecutive Interview: Channelling higher power into smaller packages
EE Times Europe Power Management's editor, Paul Buckley interviews Phil Davies, VP Global Sales & Marketing of Vicor plc to discover what the leading power conversion company sees as the major technology ...
Filter WizardCheck out the Filter Wizard Series of articles by Filter Guru Kendall Castor-Perry which provide invaluable practical Analog Design guidelines.
Linear video channel
READER OFFERRead more
This month, Freescale is giving away ten RIoTboards, worth 74 dollars each, for EETimes Europe's readers to win.
Designed to run Android operating systems efficiently or to run under Linux, the board is based on the Freescale i.MX 6Solo processor; using the ARM Cortex-A9 architecture.
And the winner is...
In our previous reader offer, Crystal Display was giving...Read more
December 15, 2011 | Texas instruments | 222901974
Unique Ser/Des technology supports encrypted video and audio content with full duplex bi-directional control channel over a single wire interface.