Menu
Samsung triggers semiconductor capital spending increase

Samsung triggers semiconductor capital spending increase

"While capital spending outperformed equipment spending in 2013, the reverse will hold true for 2014."

Worldwide semiconductor capital spending is projected to total $64.5 billion in 2014, an increase of 11.4 percent from 2013 spending of $57.8 billion.

Gartner reports capital equipment spending will increase 17.1 percent in 2014, driven by strong memory average selling prices and increased demand for consumer products.

For 2014, the analyst firm's forecast for semiconductor equipment has been increased slightly from the previous forecast.

Longer term, Gartner expects modest growth through the semiconductor cycle, with just a modest pause in the equipment market expected in 2016.

"While capital spending outperformed equipment spending in 2013, the reverse will hold true for 2014," said David Christensen, senior research analyst, Gartner.

"Total capital spending will grow 11.4 percent in 2014, compared with 7.1 percent in our prior forecast — a result of Samsung increasing its announced spending plans to $14 billion.

"Equipment spending will increase 17.1 percent, as manufacturers pull back on new fab construction and concentrate on ramping up new capacity instead."

In recent years, Christensen says the equipment industry has realised significant consolidation, as major vendors have acquired complementary and competitive companies.

As equipment advancements will lead to higher development costs, the trend of industry consolidation should be expected to continue.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Gartnersamsung

Featured

Slideshows

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

The channel came together for the inaugural Reseller News Emerging Leaders Forum in New Zealand, created to provide a program that identifies, educates and showcases the upcoming talent of the ICT industry. Hosted as a half day event, attendees heard from industry champions as keynoters and panelists talked about future opportunities and leadership paths and joined mentoring sessions with members of the ICT industry Hall of Fame. The forum concluded with 30 Under 30 Tech Awards across areas of Sales, Entrepreneur, Marketing, Management, Technical and Human Resources. Photos by Gino Demeer.

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019
Show Comments