Semiconductor Manufacturers See 2006 As Biggest Year Ever

July 11, 2006
Semiconductor equipment manufacturers expect a large growth spurt of 18%  in 2006, pushing sales to hit the $35.8 billion mark.. This is in contrast to an 11.3% decline in 2005 according to the SEMI Capital Equipment Consensus Forecast. The survey, ...

Semiconductor equipment manufacturers expect a large growth spurt of 18% in 2006, pushing sales to hit the $35.8 billion mark.. This is in contrast to an 11.3% decline in 2005 according to the SEMI Capital Equipment Consensus Forecast.

The survey, conducted by the Semiconductor Equipment and Materials Institute (SEMI), reported that survey respondents see a flat market for 2007 but a double-digit growth in 2008 which should cause sales to reach $44.1 billion.

"Favorable economic conditions, increased demand for semiconductor devices and stable inventory levels have stimulated capital investment by the world's chip makers in the first half of the year," said SEMI President and CEO Stanley T. Myers. "SEMI members anticipate strong sales of chip manufacturing equipment in 2006. Furthermore, they anticipate less dramatic fluctuations in future cycles consistent with end-market growth and long term diversification trends in consumer electronics."

Looking at specific products, the wafer processing equipment segment will experience the most significant level of growth in 2006 of an estimated 20% reaching $27.4 billion iin sale.. Assembly and packaging equipment will grow 11.6% to $2.4 billion, and the market for equipment to test semiconductors is expected to grow about 14 % to $6 billion.

From a geographical standpoint, China will lead the growth for new equipment with a 78% increase. Taiwan is expected to grow 22% and North America 21%. Equipment sales in Europe are projected to raise 14%, while Korea and Japan will see growth in the high single digits.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent 

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world. 

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