Semi equipment companies expect $31 billion market

The leading manufacturers of semiconductor equipment expect the industry to decline 35 percent from the record $47.7 billion posted in 2000.

The leading manufacturers of semiconductor equipment expect the industry to decline 35 percent from the record $47.7 billion posted in 2000, according to the mid-year edition of the SEMI Capital Equipment Consensus Forecast, just released by the Semiconductor Equipment and Materials International (SEMI).

Survey respondents anticipate the industry to ship $31 billion of new chip manufacturing, testing and assembly equipment in 2001. The forecast also indicates that the capital equipment market will grow 11.6 percent in 2002, to reach $34.6 billion; and 22.5 percent in 2003 to $42.4 billion.

‘Chip manufacturing capacity was being added at accelerated levels last year because PC, cell phone, telecommunication and network communication markets were expected to grow through 2001. Weakness in these end markets led to an over-capacity situation and chip makers stopped ordering new high-tech manufacturing equipment,’ said Stanley Myers, president and CEO of SEMI, speaking today at the SEMICON West press conference. ‘The SEMI Consensus Forecast results project 2001 to be the largest annual percentage decline for the equipment industry. Yet, they also suggest this year will be the second greatest year for industry revenues.’

The SEMI Consensus Forecast includes input from 71 of the trade association’s member companies in the United States, Europe and Japan.

The forecast results are based on data collected between May and June 2001 by the SEMI Industry Research and Statistic department. Responding companies represent more than 85 percent of the total sales volume for the global semiconductor equipment industry.

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