Gartner estimates that semiconductor industry capital spending will decrease 42.6% in 2009 to $25,272 million. However, next year, the industry’s capital spending is forecasted to rebound, growing 45.3% to $36,728 million due to technology upgrades. Capital equipment spending by the semiconductor sector is expected to decline 46.8% to $16,297 million in 2009. In 2010, it is expected to grow 56.3% to $25,417 million. Revenues for the three market segments—wafer fab equipment, packaging and assembly equipment, and automated test equipment—are each forecasted to decrease more than 40% this year. Next year, sales are expected to grow at over 50% for each segment. Gartner forecasts further consolidation among semiconductor equipment companies, as well as more company closures.

Source: Gartner