Worldwide semiconductor capital equipment spending is projected to approach $36.9 billion in 2010, a 122.1% increase. Strong spending by the foundry and logic segments of the market, combined with a technology upgrade for memory manufacturers, has led to capital expenditure currently being above 95%, quite an increase from 2009, when it dropped 41.2% to $16.6 billion, the worst year ever documented. In 2011, a slowing economy is expected to negatively impact electronic and semiconductor sales, slowing capex growth to 10%. Semiconductor capital equipment spending is projected to grow 4.9% this year. Wafer fabrication equipment (WFE) sales are expected to increase 119.9% in 2010 and 3.9% in 2011. Overall utilization rates peaked at 94% in the second quarter of 2010, but will drop back to the 90% range as more capacity comes online and semiconductor production slows and becomes more aligned with end-user demand. All segments are projected to continue to grow through 2012, as companies move from technology buys to capacity purchases.

Source: Gartner