Global semiconductor capital equipment spending should reach $43.5 billion in 2011, a 7.1% increase from 2010, but will stall for the rest of this year and into next, dropping 19.2% to $35.2 billion in 2012. Gartner predicts that the capital spending decline will be due to too much electronics inventory and weak demand because of macroeconomic conditions. Gartner also expects wafer fab equipment spending to decline in the second half of 2011 and into 2012 due to decelerating device sales and surplus inventory liquidation. Wafer fab equipment spending is projected to grow 9.4% to $34.6 billion in 2011 and then to decline 19.6% to $27.8 million in 2012. In 2010, semiconductor capital equipment spending and wafer fab equipment spending soared 142.7% and 145.5% to reach $40.6 billion and $31.6 billion, respectively.

Source: Gartner