SMT & Inspection | December 10, 2008
Semiconductor Equipment Spending to fall to Six-Year Low in 2009
Following a dismal 2008, global spending on semiconductor manufacturing equipment in 2009 will fall to its lowest level in six years, due to weakening conditions in the chip and electronic equipment markets, according to iSuppli.
iSuppli anticipates that worldwide capital spending by chip makers on semiconductor manufacturing equipment in 2009 will decline to $35.2 billion, down 17.6 percent from 2008. This will mark the lowest level of spending since 2003, when semiconductor capital spending amounted to $33.8 billion. The decline in 2009 revenue will extend the downturn seen in 2008. Through the first three quarters of 2008, capital expenditures were down by 15.3 percent compared to the same period in 2007. iSuppli anticipates that by the end of 2008, capital expenditures will fall to $42.7 billion, down 21.1 percent from $54 billion in 2007. The figure presents iSuppli’s forecast of global semiconductor equipment expenditure between 2004 - 2009: While the market for semiconductor-manufacturing gear was already showing signs of weakness in the second quarter of 2008, the extent of the market vulnerability really became apparent as the worldwide economic and financial crises flared up in the third quarter. “At the start of the second quarter, semiconductor equipment providers were still reeling from the sharp cuts in capital expenditures from the major memory chip suppliers,” said Len Jelinek, director and chief analyst for semiconductor manufacturing at iSuppli. “Because of this, capital expenditures in 2008 already were depressed, with virtually no semiconductor supplier continuing to spend at historical rates. However, by the end of the third quarter, market demand virtually stopped as global uncertainty driven by the threat of the collapse of the financial markets threw consumers into a tailspin. Companies throughout the electronic supply chain began to report declining sales and falling profits. The impact on semiconductor manufacturing was immediately apparent, with falling factory utilizations and significant reductions in capital spending, especially for capacity expansions.” Capital disappointment For semiconductor equipment makers, the sudden market collapse comes as a major letdown compared to previous expectations. While the semiconductor industry as a whole remained in an overcapacity position at the start of the second quarter of 2008, there remained a strong potential to achieve supply/demand equilibrium with just a modest increase in demand. Because of this, semiconductor suppliers and chip equipment makers were looking forward to 2009 with the anticipation of modest growth. Leading-edge chip manufacturers were rushing toward the 28/30-nanometer process technology nodes. In the background, the migration to next-generation, 450mm wafers was becoming a hot topic. However, all these expectations flew out the window as the severity of the economic and electronics downturn became apparent in the third quarter. Long-term impact Beyond the downturn, an expected key growth driver for the global semiconductor equipment industry has failed to materialize: massive capital expansions for new capacity in China. China has been unable to establish a technological manufacturing base that requires the use of advanced technologies and expensive new semiconductor manufacturing equipment. However, the chip and chip equipment market in the future will recover and achieve new growth. “The chip market eventually will rebound as the global economy stabilizes and consumers regain confidence,” Mr Jelinek predicted.
IPC: Unanimous approval of USMCA needed IPC issued a statement this week expressing support of the recently bi-partisan approval of the United States-Mexico-Canada Agreement (USMCA), and a strong desire for legislative approval by Canada, Mexico, and the U.S.
Nordson's CFO to retire in 2020 after 30 years with the company Nordson's Executive Vice President and Chief Financial Officer, Gregory A. Thaxton, plans to retire in 2020 after thirty successful years with the company, with the last 12 years as CFO.
KUKA restructures subdivision due to economic uncertainty KUKA is restructuring a subdivision in the Robotics segment that is responsible for automated manufacturing solutions such as cells and special machines.
PCB industry recovers slightly in Q3 PCB manufacturers in the D/A/CH region were able to increase sales sequentially in the third quarter of 2019 by 1.1%. However, sales figures are 11% lower than those recorded for the third quarter of 2018, reports the industry association ZVEI PCB and Electronic Systems.
Garz & Fricke moves into new HQ in Hamburg-Harburg Garz & Fricke GmbH continues to expand. As of late October, the business operations of the HMI and Panel PC specialist will be transferring to the new headquarters in in Hamburg-Harburg.
TF Massif Technologies taps new CEO British Columbia-based TF Massif Technologies has announced the appointment of Tom Peregoodoff as the company’s new chief executive officer.
DoJ: Google, Fitbit deal under review The U.S. Justice Department is looking into anti-trust issues concerning Google's bid to buy Fitbit Inc.
L3Harris Tech secures U.S. Marine Corps order L3Harris Technologies received a USD 50 million follow-on delivery order for Falcon III AN/PRC-160 HF radios and related equipment from the U.S. Marine Corps .
Metair completes Romanian lithium-Ion battery cell factory South African energy storage company, Metair Investments, says that its Romanian units Prime Batteries and Rombat have completed the installation of the group's first Lithium-Ion battery cell manufacturing and assembly facility in Bucharest, Romania.
£5m award marks ‘topping out’ of Cardiff research powerhouse An GBP 80 million Cardiff University powerhouse for Welsh scientific research has been ‘topped out’ by Bouygues UK – backed by over GBP5 million support from Welsh Government and industrial partners.
Advanced Energy expands with new lab near Frankfurt Advanced Energy Industries, Inc. has opened its Advanced Materials Processing (AMP) Showcase Lab near Frankfurt, Germany.
TTM Technologies unveils NY engineering center On the heels of its acquisition of manufacturing and IP assets from i3 Electronics Inc., TTM Technologies has announced the opening of a new engineering center in Binghamton, NY.
EU Commission to support pan-European battery development Seven member states will provide, in the coming years, up to EUR 3.2 billion in funding to support research and innovation in the common European priority area of batteries.
The pulse of the electronics industry Growth is slowing worldwide and the industry’s outlook is less optimistic than in previous quarters, although it is still generally positive, according to the results of IPC’s fourth-quarter 2019 Pulse of the Electronics Industry survey.
Teradyne delivers J750 semiconductor test system to Ardentec Teradyne has hit a milestone with the 6,000th shipment of the J750 family of semiconductor testers.
Season Group names new SvP for global business development Season Group has appointed Stephen Tsao as the company's new Senior Vice President, Global Business Development.
Zestron appoints new sales director Europe Mr. Adam Meinert recently joined ZESTRON as the Sales Director of Europe.
Sypris Electronics tapped for NASA project Sypris Electronics LLC has been awarded a contract from Collins Aerospace in association with NASA’s Orion Spacecraft project.
NexLogic eyes implantable med-electronics NexLogic Technologies Inc. has announced its entry into assembly and manufacturing of implantable medical devices, a rapidly growing segment in the medical electronics market.
International Wire Group buys Owl Wire and Cable International Wire Group (IWG) has acquired New York-based Owl Wire and Cable from Marmon Holdings Inc.
ZF to set up third research and development centre in China ZF Friedrichshafen AG is establishing a third Chinese R&D centre in Guangzhou southern China. Representatives of ZF and the local authorities have signed an agreement and ZF plans to invest approximately EUR 90 million in the new development center.
Semiconductor market suffers another plunge in Q3 With revenue plunging by a gut-wrenching 14.7% in the third quarter, the global semiconductor market appears destined for a year of double-digit decline, despite some signs of growth in the critical memory segment, says IHS Markit.
Ericsson to pay $1B to resolve US corruption investigations Swedish telecom company Ericsson has reached a resolution on U.S. FCPA investigations by the the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC).
Bel acquires CUI Inc. power assets Bel Fuse Inc. has closed on its previously-announced deal with CUI Global for the majority of the power business of its subsidiary, CUI Inc.Load more news