Strong growth predicted for semiconductor spending in 2010

While 2009 saw a decline in spend on semiconductors 2010 is set for massive growth

Semiconductor equipment spending is set to increase by 45.3 per cent in 2010, according to the latest research from Gartner.

The analyst firm said that 2009 will see a 42.6 per cent decline in spending on semiconductor equipment, although the market is currently in the middle of a very strong period of growth recovery.

The figures cover a five-year period to 2014, and indicate growth of 30.2 per cent in 2011 and 19.3 per cent in 2012. Spending will have decreased by 14.4 per cent in 2013, but will rise again in 2014 by 10.1 per cent.

Dean Freeman, research vice president at Gartner, said that foundry spending and select spending by a few memory companies drove the growth in the semiconductor equipment segment in the second half of 2009.

However, Bob Johnson, also a research vice president at Gartner, said that more companies would be forced to close as consolidation in the industry continued.

"While initially this may seem to be a dark time for the equipment segment, as the industry consolidates a much stronger equipment sector will emerge to carry on in the future," he said.

The research also reported that worldwide automated test equipment spending declined by 44.9 per cent in 2009, but will see growth of 59.7 per cent in 2010. Gartner noted, however, that after falling substantially through the first quarter of 2009, this market recovered in the second quarter.