IC Insights’ yearly report on the semiconductor industry predicts capital spending in the industry will climb 1% in 2007, compared to 18% growth in 2006. The top 25 companies are projected to increase capital spending by 2% in 2007 and account for 87% of semiconductor capital spending worldwide. The leader this year is expected to be Samsung, with $6.7 billion budgeted for capital expenditures, followed by Intel, with $5.5 billion. These figures reflect decreases of 2% for Samsung and 5% for Intel. At third, the South Korean firm Hynix is predicted to increase spending by 4% to $4.5 billion. The largest spending increase in 2007—168% to $2.4 billion—is expected from Taiwan-based Nanya. Taiwanese and “other” firms, including Singaporean and Chinese firms, are expected to boost capital spending by 12%, North American companies’ spending should grow by 1% and capital expenditure from South Korean firms is predicted to be flat. European and Japanese companies are projected to decrease spending by 5% and 12%, respectively.

Source: EDN

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