Circuits Assembly Online Magazine - Semi Equipment Makers Forecast Continued Gains

CHIBA, JAPAN – The top semiconductor equipment manufacturers last week predicted the market would grow 3,7% in 2007, followed by 13% in 2008, ultimately hitting $50.42 billion by 2009, the SEMI trade group said.

Survey respondents project 2006 sales will reach $40.64 billion, a 24% gain year-over-year.

The forecast is based on interviews conducted between late October and November with companies representing a majority of the total sales volume for the global semiconductor equipment industry.

The forecast indicates the equipment market will grow 24% in 2006, a sharp rebound from the 12% decline in 2005. “For most of the past year, our industry has experienced a significant increase in demand for semiconductor devices, as well as strong economic conditions," said SEMI president and CEO Stanley T. Myers.

Wafer processing equipment, the largest product segment by dollar value, is expected to grow over 26% in 2006 to $28.84 billion. Survey respondents anticipate that the market for assembly and packaging equipment will expand 13% to $2.4 billion in 2006. The market for equipment to test semiconductors is expected to increase by about 22% to $6.45 billion this year.

The Japanese market, which is projected to grow 11% this year, remains the largest market region for worldwide equipment sales with $9.11 billion of new equipment sold into the region in 2006.

South Korea continues to expand, with projected growth of 20% this year. Sales of new equipment in China and the Rest-of-World market regions will grow 80% and 31%, respectively.

Table 1. Forecast by Equipment Segment

	2005 Actual	2006	% Chng	2007	% Chng	2008	% Chng	2009	% Chng
Equipment Type	$B	$B		$B		$B		$B
Wafer Processing	$22.86	$28.84	26.2%	$30.00	4.0%	$34.10	13.6%	$35.76	4.9%
Assembly & Packaging	2.13	2.40	12.9%	2.51	4.4%	2.88	14.7%	3.01	4.5%
Test	5.29	6.45	22.1%	6.59	2.1%	7.47	13.5%	8.02	7.3%
Other	2.61	2.94	12.6%	3.04	3.4%	3.32	9.1%	3.54	6.7%
Total Equipment*	$32.88	$40.64	23.6%	$42.14	3.7%	$47.77	13.3%	$50.32	5.4%

Table 2. Forecast by Region

	2005 Actual	2006	% Chng	2007	% Chng	2008	% Chng	2009	% Chng
Market Region	$B	$B		$B		$B		$B
North America	$5.70	$7.83	37.2%	$8.11	3.6%	$8.54	5.3%	$8.83	3.4%
Japan	8.18	9.11	11.3%	9.63	5.7%	10.77	11.9%	11.25	4.4%
Taiwan	5.72	6.91	20.8%	7.03	1.7%	8.70	23.7%	9.44	8.6%
Europe	3.26	3.66	12.1%	3.76	2.9%	3.92	4.4%	4.08	4.1%
South Korea	5.83	6.98	19.9%	7.19	2.9%	8.16	13.6%	8.50	4.1%
China	1.33	2.39	80.4%	2.42	1.0%	2.97	22.8%	3.23	8.7%
Rest of World	2.86	3.76	31.3%	4.01	6.8%	4.70	17.2%	5.00	6.3%
Total Equipment*	$32.88	$40.64	23.6%	$42.14	3.7%	$47.77	13.3%	$50.32	5.4%