Bad News For Semi Equipment Manufacturers
Behind the Applied-Tokyo Electron merger could be a precipitous decline in spending on semiconductor manufacturing equipment.
Gartner is expecting the decline to be 8.5% this year.
This year’s spend is expected to be $34.63 billion. Last year’s was $37.83 billion.
If you add in the cost of building fabs, the decline in overall capex is expected to be 6.8% to $54.77 billion.
Half of that will be spent by Intel, Samsung and TSMC.
By contrast, to the equipment manufacturers, the device manufacturers are expected to see a market increase north of 5%.