Semiconductor spending inches up

nand-chipsCapital spending by semiconductor companies grew by 12.9 percent last year, but will only grow by 0.8 percent this year.
That’s according to market intelligence company Gartner which said capital spending will generate revenues of $65.7 billion this year.
Bob Johnson, a VP at Gartner, said that equipment spending outstripped capital spending last year and will do the same this year. 2016 will be a different kettle of fish. Manufacturers will exercise caution this year.
This year, chip foundries will outspend logic device manufacturers but there’s a danger of the mobile market being saturated and that will dampen the need for new capacity.
Memory manufacturers are likely to switch their manufacturing from NAND to DRAM because the market is more favourable for the latter than the former. But that will switch net year, because DRAM will be in oversupply.
Demand for solid state drives will mean more capacity shifts during the next three years.