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SAN FRANCISCO -- Manufacturers of semiconductor equipment expect 2006 to be the second largest year ever for sales of new semiconductor equipment, according to a mid-year forecast by the SEMI Capital Equipment Consensus announced during SEMICON West.
 
Following an 11.3% decline in 2005, the equipment market will grow 18% to $38.8 billion in 2006. Survey respondents – based on interviews conducted in May and June with major equipment companies – see the market remaining flat in 2007 but resuming double-digit growth to reach $44.1 billion in 2008.
 
“Favorable economic conditions, increased demand for semiconductor devices and stable inventory levels have stimulated capital investment by the world’s chip makers in the first half of the year,” said SEMI president and CEO Stanley T. Myers. “SEMI members anticipate strong sales of chip manufacturing equipment in 2006. Furthermore, they anticipate less dramatic fluctuations in future cycles consistent with end-market growth and long term diversification trends in consumer electronics.”

 
The forecast indicates that wafer processing equipment will experience the most significant growth this year, rising 20% to $27.4 billion. The market for assembly and packaging equipment will grow 11.6% to $2.4 billion in 2006, while the semiconductor test equipment market is expected to grow 14% to $6 billion this year.
 
The market in China leads the growth in 2006, with 78%. Taiwan (22%) and North America (21%) and Europe (14%) are also projecting growth, according to SEMI.
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