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.
Are you worth insuring? Wearables to decide
January 30, 2015
At Cicor's first Innovation Insights Symposium held in Zurich end of January, the focus was very much on smart wearables ...
Security flaw in BMW's ConnectedDrive detected
SMBus Version 3.0 offers improved power management performance
Quantum entanglement now on-a-chip
Single crystal perovskites promise cheaper solar cells and LEDs
Wafer-scale perovskite solar cells on the horizon
January 30, 2015
Researchers from the Los Alamos National Laboratory have revealed a solution-based hot-casting technique that allows growth ...
Spread Spectrum Frequency Modulation Reduces Automotive LED Driver EMI
Privately-owned car not on the red list, study says
Private equity buys Canadian MEMS foundry
- Accelerate SDN and NFV with Off-the-Shelf Software
- Sensing Elements for Current Measurements
- Investigating Die attach Failure in IGBTs using Power Cycling Tests
- Power Semiconductor Failure Diagnosis using Thermal Characterization and Power Cycling
InterviewCEO interview: Bosch's IoT startup is all about the system
Thorsten Mueller, CEO of Bosch Connected Devices and Solutions GmbH (Reutlingen, Germany), has been guiding the latest startup subsidiary of Robert Bosch GmbH since 2013 when he started the initiative ...
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
To ensure you have a good start in 2015, Freescale is giving away five of its QorIQ TWR-LS1021A Tower system modules, worth USD269 each, for EETimes Europe's readers to win.
The module is the most feature-rich and high-performance Tower system offered by Freescale, enabling compatibility and interoperability with the growing list of Tower expansion modules, offering an easily accessible...MORE INFO AND LAST MONTH' WINNERS...
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.