Semiconductor equipment sales to plummet 52 percent in '09

Posted by Aharon Etengoff

San Francisco (CA) - Semiconductor equipment sales are expected to plummet 52 percent in 2009. According to SEMI Capital Equipment Forecast, the latest decline follows a 31 percent market contraction recorded in 2008.

"Spending on semiconductor manufacturing equipment this year will reach low levels experienced 15 years or so ago," said SEMI CEO Stanley T. Myers. "Forecasting has never been more challenging, though we expect 2010 spending to show double-digit improvement off of extremely low levels in 2009."

Semiconductor sales

Myers explained that the market for assembly and packaging equipment will decrease by 53 percent to $958 million in 2009. The semiconductor test equipment sector is likely to experience a similar reduction of 48 percent to $1.78 billion.

Indeed, 2009 growth is anticipated to be negative in all regions with the North American market claiming the number one spot from Japan - which will fall to number two, followed by Taiwan. In addition, the South Korean market is expected to contract 62 percent.

Despite the grim statistics, however, Myers predicted that semiconductor equipment sales would rebound and post 47 percent annual growth by 2010.