Only six majors increasing capex this year
Only six major semi players expected to spend more on capex in 2012 than in 2011, says IC Insights.
IC Insights says that only six of the 35 major semiconductor suppliers Intel, Samsung, Hynix, TSMC, UMC, and Rohm with significant capital expenditure budgets are expected to spend more in 2012 than they did in 2011.
With an increase of $1.7bn to $12.5bn, Intel is expected to post the biggest dollar increase in capex spending for 2012, though it trail sSamsung ‘s $13.1bn in overall capex spending for the year.
TSMC is spending $8.3bn; Hynix is spending $3.7bn; UMC $2bn and Rohm $685m.
Though only six companies are expected to increase their capital spending this year, the total semiconductor capital spending forecast figure for 2012 was raised to $63.3bn from $60.7bn, however and 2012 semiconductor industry capital expenditures are now forecast to decline 3% this year.
The six major companies that plan to increase semiconductor capital spending this year are expected to collectively spend about $5.2bn more in 2012 than in 2011. In contrast, the total of the remaining capital spending outlays are forecast to decline by about $7.5bn this year.
It should be noted that a few of the major OSAT (Outsourced Semiconductor Assembly and Test) companies also plan to significantly increase their capital spending this year, including Amkor (from $493m in 2011 to $550m this year), SPIL (from $376m in 2011 to $585m this year), and STATS ChipPAC (from $304m in 2011 to $400m this year). IC Insights believes that these increased spending budgets by some of the major OSAT companies indicates their belief that semiconductor unit volume shipments will be on the rebound this year.