Worldwide semi capital spending to fall

Silicon wafer - Wikimedia Commons -Gartner said it expects capital spending in the semiconductor industry to fall by 4.7 percent this year, a bigger drop than the market research company predicted in the last quarter.

Capital spending will amount to $59.4 billion this year.

David Christensen, a senior research analyst at the company said the decline is due to people buying less electronics and the world economy.

But he said things will get brighter.

“The longer term outlook shows a return to growth, although wafer level manufacturing equipment is expected to enter a gentle down cycle in 2016 due to the loss of the supply and demand balance in the DRAM market.”

The DRAM market regularly goes through phases of glut and famine.

Spend on wafer manufacturing equipment will fall by 2.4 percent, but the lithography sector will grow by 1.4 percent. Christensen predicts “relatively strong growth” from 2017 through to 2018.