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Semiconductor Equipment Sales to Decline Two Percent in 2013

Semiconductor equipment revenue will bounce back in 2014.
Worldwide sales of new semiconductor manufacturing equipment will decline two percent in 2013 after falling twelve percent in 2012, according to trade association SEMI.

Chip equipment revenue in 2012 will total $38.2 billion in 2012, down from $43.5 billion in 2011. Sales will fall to $37.4 billion in 2013 before rebounding to $42 billion in 2014, the trade group reported. The semiconductor equipment market had increased 15 percent in 2010 and 9 percent in 2011.

Growth in 2012 is expected in only two regions: Taiwan and Korea. Chip equipment sales in Taiwan will rise 12.7 and 10.7 percent in Korea.
In 2013, China, Taiwan and Japan are expected to have slight to moderate positive growth. While the overall 2013 forecast indicates another 2.1 percent reduction in sales, 2014 sales are expected to rebound increasing 12.5 percent with all regions increasing sales.

The decline in semiconductor manufacturing equipment sales in 2012 reflects normal patterns of industry cyclicality and a slowdown in the broader economy, said Denny McGuirk, president and CEO of SEMI. “What’s more important is that technology investments at the advanced nodes and in leading-edge packaging remain important drivers, and when market confidence returns, we expect capacity investments to increase,” he added.

Wafer processing equipment, the largest product segment by dollar value, will decline 14.8 percent in 2012 to $29.3 billion and remain at approximately that same level in 2013, according to SEMI.

The market for assembly and packaging equipment will drop 5.1 percent to $3.2 billion in 2012, and decline 7.6 percent in 2013 when sales total $2.93 billion. Semiconductor test equipment revenue will drop 4.8 percent, reaching $3.6 billion in 2012 and fall 9.7 percent to $3.24 billion in 2014, according to SEMI.