Over 150 fab projects lead to strong 2010 and 2011

Global spending on semiconductor manufacturing equipment will rise by a huge 130 percent this year and topple the $36 billion mark according to a new report by Semiconductor Equipment and Materials International (SEMI). It added that that spending growth will last into 2011.

Over 150 fab projects will contribute an estimated $83 billion in spending it said in its World Fab Forecast report. Those tracked include construction projects and equipment spending for high volume, smaller capacity, MEMS, and Discrete, including LED, fabs.

However, it’s not all good news. Despite vigorous expansions by makers around the world,  SEMI warned that the excessive supply of the industry is not likely to happen in the short term.

The company also estimated that the spend of worldwide revenue would drop to 11 percent this year and 12 percent next year from the 2008-2009 global recession, compared with the peak of 14 percent from 2004 to 2007.

However, SEMI pointed out that global shipments of silicon wafers hit a record high of 2.3 billion square inches in the second quarter, inspiring chipmakers to add capacity to their productions.

Other findings include how North America-based manufacturers of semiconductor equipment posted $1.83 billion in orders in July 2010. Of the major equipment shoppers surveyed by the association Taiwan will likely remain the number one spender in 2010, with an estimated spend of $9.18 billion. This is up 111 percent from last year.