Gartner: Semiconductor Equipment Spending Skyrockets

Paul Lilly

While the tech industry might like to forget that 2009 ever happened, things are shaping up much more nicely in recent times. So much so that market research firm Gartner predicts worldwide semiconductor capital equipment spending to shoot past $35.4 billion by the end of 2010, which would represent a 113.2 percent increase from one year ago.

"The drive to new technology nodes will drive semiconductor equipment growth in 2010," said Klaus Rinnen , managing vice president at Gartner. "The demand for 40nm and 45nm devices is now ramping up, resulting in heavy foundry-based capital spending. Investment at the 3x node by Intel, an increase in spending by NAND memory producers, and the transition to the next generation DDR3 DRAM memory are the key investment growth drivers."

At the same time, Rinnen warns that the growth will start to taper off in 2011 as orders start to slow down. Rinnen predicts the market will still see an upwards trend, but only to the tune of 6.6 percent.

""We could see a slight slowing in orders as 2010 ends, and the industry focuses on macroeconomic conditions. We expect capital equipment growth to continue through 2011, but at a reduced rate, as spending responds to slower growth in the semiconductor markets," Rinnen said.

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