Fab Tool Sales Slip to $15.8 Billion in Q3

Release time：2018-12-05
author：Ameya360
source：EE Times
reading：1289

Global semiconductor equipment billings slipped to $15.8 billion in the third quarter, a 5% decrease from the second quarter, according to the SEMI trade organization. Billings improved by 11% compared to the third quarter of 2017.

The third quarter marked the second straight quarter of sequential billings declines for the semiconductor equipment industry, which has been enjoying a historic run. Third quarter billings were down by 7% compared to $17 billion in the first quarter, the peak of the upcycle.

SEMI said in July it expects chip equipment sales to hit $62.7 billion this year, an increase of 12% compared to the record high of $56.6 billion the industry set last year.

Fab Tool Sales Slip to $15.8 Billion in Q3

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Fab Tool Billings Fall for First Time in 2 Years
Trade news

Fab Tool Billings Fall for First Time in 2 Years

Billings among North American manufacturers of semiconductor production equipment posted a year-over-year decline last month for the first time in two years as the fab tool market continues to cool after two years of white-hot growth.The three-month rolling average of billings for North American chip equipment firms slipped to $1.94 billion in November, down 4.2% compared to October and down 5.3% compared to November 2017, according to the SEMI trade association.“For the first time in over two years, billings of North American equipment manufacturers are down relative to the same month the year before,” said Ajit Manocha, president and CEO of SEMI, in a press statement. “After reaching historical revenues earlier this year, billings activity is decelerating in line with weaker growth expectations for 2019.”November marked the first time that fab tool billings declined on a year-over-year basis since May 2016.Despite slowing growth in recent months, global sales of semiconductor equipment are expected to set an all-time high for the second-straight year in 2018. SEMI recently forecast that global semiconductor equipment sales would grow 9.7% this year to reach $62.1 billion before declining by 4% in 2019. The trade association also projected that tool sales would bounce back to grow more than 20% in 2020 to reach $71.9 billion.
2018-12-20 00:00 reading：1644
Fab Tool Sales Expected to Decline in 2019
Trade news

Fab Tool Sales Expected to Decline in 2019

 After what is expected to be a second-straight record sales year in 2018, the semiconductor equipment market is projected to decline by 4% next year before recovering to grow by more than 20% in 2020, according to the SEMI trade group.In its year-end forecast, released on Wednesday (Dec. 12) at the Semicon Japan trade show, SEMI estimated that fab tool sales will grow 9.7% this year to reach a record $62.1 billion. The forecast is consistent with other forecasts released earlier this year, despite slowing sales growth in recent months.But the forecast calls for tool sales to decline to $56.6 billion next year before rebounding to grow 20.7% in 2020, reaching a new record high of $71.9 billion.SEMI projects that the market for wafer processing equipment — the largest category of semiconductor production equipment — will grow 10.2% this year to reach $50.2 billion. The chip test equipment market is expected to grow by 15.6% this year to reach $5.4 billion, while the assembly and packaging equipment market is forecast to grow 1.9% to reach $4 billion, said SEMI.Semiconductor equipment market in billions of U.S. dollars. (Source: SEMI)South Korea — paced by continued record spending by Samsung Electronics — is expected to remain the largest regional market for fab tools for a second-straight year in 2018. China is expected to leapfrog Taiwan in 2018 to become the second-largest market for chip equipment, growing at a rate of 55.7%, said SEMI.For 2019, SEMI projects that South Korea, China, and Taiwan will remain the top three markets for chip equipment.
2018-12-13 00:00 reading：1446
Fab Tool Spending on Pace for Third Straight Record Year
Trade news

Fab Tool Spending on Pace for Third Straight Record Year

Spending on semiconductor capital equipment is on pace to set a new all-time high for the third consecutive year, led by strong sales in South Korea and China, according to the latest forecast by the SEMI trade association.The latest SEMI forecast calls for spending to rise 14 percent this year, reaching nearly $65 billion. Spending is forecast to rise an additional 9 percent next year to top $70 billion for the first time, SEMI said. The last time semiconductor equipment spending rose for four consecutive years was the mid 1990s.South Korea is expected to remain the top region for chip equipment spending in 2018. While Samsung Electronics is expected to reduce its equipment spending from its 2017 level of about $18 billion, Samsung is still expected to account for about 70 percent of the equipment spending in South Korea this year, according to SEMI. SK Hynix is expected to increase its equipment spending in South Korea this year, SEMI said.Meanwhile, China — which is expected to be the top region for semiconductor equipment sales beginning next year — continues its dramatic rise in fab tool spending. Equipment spending in China is expected to increase by 65 percent this year and by an additional 57 percent in 2019, SEMI said.SEMI noted that more than half of the semiconductor equipment spending in China in 2018 and in 2019 is expected to come from non-Chinese companies including Intel, SK Hynix, TSMC, Samsung and Globalfoundries. Domestic Chinese companies — backed by large government initiatives — are building a considerable number of fabs that are starting to equip this year and next year, according to SEMI. These companies are expected to double their equipment investments in 2018 and again in 2019, SEMI said.The trade group said other regions are also ramping up investment in semiconductor equipment, including a projected 60 percent increase in spending in Japan this year. Spending in Europe and the Mideast is expected to increase by about 12 percent, SEMI said, while growth in Southeast Asia is expected to be about 30 percent.
2018-06-14 00:00 reading：1338
Fab Tool Spending Projected to Rise for 3rd Straight Year
Trade news

Fab Tool Spending Projected to Rise for 3rd Straight Year

　　A surge in spending on new wafer fabs in China is projected to drive up global spending on fab tools in 2018, the third straight year of increases and the first time that has happened since the mid-1990s.　　Total global fab tool spending will increase 9 percent to reach more than $62 billion this year, according to the latest forecast from the SEMI trade association. Spending on tools is forecast to rise an additional 5 percent in 2019, which would mark the fourth straight year of spending increases, said SEMI (San Jose, Calif.).　　Most of the expected increases in 2018 and in 2019 will be driven by new fabs under construction in China. A record 26 volume fabs began construction in China in 2017, and they are buying equipment over the next two years, SEMI said.　　China's fab tool spending is forecast to increase 57 percent in 2018 and an additional 60 percent in 2019, SEMI said. The trade group expects China to become the top region in the world for fab tool spending in 2019, topping South Korea.　　South Korea's fab equipment spending — which rose to more than $20 billion in 2017 — will decline 9 percent to $18 billion in 2018 and fall a further 14 percent to $16 billion in 2019, according to the SEMI forecast.　　Equipment spending in Taiwan — expected to be the No. 3 market in 2018 — will fall by 10 percent to about $10 billion in 2018 before rebounding to grow 15 percent to more than $11 billion in 2019, SEMI said.　　South Korea's Samsung Electronics is expected to maintain its spot as the global leader in fab tool buying in both 2018 and 2019, but the company's spending in each of those years is expected to be below 2017, when it spent more than $18 billion on fab tools.　　Spending on tools for 3D NAND production is expected to increase by 3 percent in both 2018 and 2019 to reach $16 billion and $17 billion, respectively, SEMI said. Tool spending for DRAM production is forecast to grow by 26 percent this year to reach more than $14 billion before declining by 14 percent to $12 billion in 2019, according to the SEMI forecast.　　Fab tool buying by foundries is expected to grow by 2 percent to reach $17 billion this year, SEMI said. Foundries are projected to increase their spending dramatically next year, up 26 percent to $22 billion to support 7nm and additional capacity, according to the forecast.
2018-03-22 00:00 reading：1268
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